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Introduction to the World Wide Web |
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Archived from http://news.com.com/2100-1017-248482.html?legacy=cnet
Net Grocer Streamline Calling it Quits
By Sandeep Junnarkar
Staff Writer, CNET News.com
November 13, 2000, 8:10 AM PT
Streamline.com's days of bagging groceries are drawing to an end.
The Westwood, Mass., online grocer said Monday it is phasing out its operations
and will stop its service Nov. 22.
In September, Streamline sold its Washington, D.C., and Chicago operations
to Peapod--another online grocer brought back from the brink after European
food provider Royal Ahold pumped $73 million into it.
Streamline's management held some hope that it could find investors or strategic
partners to remain afloat or sell its remaining operations. The efforts, the
company said, have fallen flat in light of current conditions on the financial
markets for business-to-consumer Internet companies.
"After months of extensive discussions with potential strategic and financial
partners, we believe we have thoroughly exhausted all possible options and
must discontinue our service," Timothy A. DeMello, Streamline's chairman,
said in a statement.
Companies selling groceries over the Internet have long been considered some
of the more shakier business propositions. A few years ago, when e-tailing
was just beginning to soar, Netgrocer.com earned the distinction of being
one of the first to cut its staff.
The biggest hit so far, however, was the shuttering of Priceline.com's WebHouse
Club grocery service in October, which exacerbated the declining fortunes
of one of the Internet's biggest brand names.
And as recently as last week, Webvan, one of the leaders in the Web grocery
business, said it would begin charging its customers for orders delivered
totaling less than $75.
Streamline said it now plans to use its remaining cash, and the cash it raises
from selling its assets, to settle with its creditors.
The company said it will provide severance to employees and retain a small
staff to oversee its asset sale and to bring its operations to a halt.