Scratch That: Pets.com Shutting Down

Pets.com (IPET Quote) said it would close its doors, lay off 80% of its workforce and sell off most of its assets, including its Sock Puppet mascot.

The company, which went public in February at $11 a share and has since seen its stock fall as much as 96%, said it couldn't raise additional money or sell itself. In a statement that will likely send chills down the spines of executives of other ailing Internet companies, Pets.com said "no party was prepared to provide capital or acquire the company. In fact, out of the more than 50 prospects contacted, fewer than eight were even prepared to visit with the company." So much for the appeal of being the "leading online pet retailer," as Pets.com was still calling itself in its farewell press release.

"With no better offers and avenues effectively exhausted, we felt that the best option was an orderly wind down with the objective to try to return something back to the shareholders," said Chairman and CEO Julie Wainwright in a statement. Pets.com said it would lay off 255 of its 320 employees and sell assets including inventory, distribution-center equipment, content, intellectual property and the famous puppet icon. ...