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eToys Sets Bankruptcy Filing, Saying Stock Is 'Worthless'

TSC Staff

eToys (ETYS Quote) Monday said it plans to file for bankruptcy within 10 days, noting that it doesn't expect to be in business beyond March and that its shares are "worthless."

The e-tailer also said it would be delisted shortly from Nasdaq on grounds that it fails the exchange's net tangible assets requirement. eToys shares plunged 3 cents Monday to close at 9 cents.

Once a highflying e-commerce company, Los Angeles-based eToys effectively went out of business Feb. 5, when it said it would wind down its operations this spring.

eToys' share price took the usual dot-com trajectory: After going public in the summer of 1999, shares rose as high as $90, giving the company a market value of more than $1.5 billion, before collapsing.