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EXHIBIT 99.1
PRESS RELEASE
INVESTOR CONTACT: JOHN CUMMINGS
415-343-1525
[email protected]
PETS.COM ANNOUNCES PLANS TO WIND DOWN ONLINE PET RETAIL OPERATIONS
AND SELL ASSETS
SAN FRANCISCO--November 7, 2000--Pets.com (Nasdaq: IPET), the leading
online pet retailer, announced today that it will begin the orderly wind down of
its operations. In addition, it announced the layoff of approximately 255 of its
320 employees. The company plans to sell the majority of its assets, including
inventory, distribution center equipment, URLs, content and its Sock Puppet
brand icon and other intellectual property.
The announcement came after a lengthy and exhaustive effort to both
raise capital, dating back to early summer, or more recently, to sell the
company outright. Merrill Lynch was engaged to assist the company in its efforts
and assisted in contacting more than 50 domestic and international strategic and
financial prospects on its behalf. The company worked to maximize business
efficiencies and eliminate as many operating expenses as was prudent to conserve
cash and to provide more time to examine all options. In the end, however, the
result of these efforts was insufficient as no party was prepared to provide
capital or acquire the company. In fact, out of the more than 50 prospects
contacted, fewer than 8 were even prepared to visit with the company.
"I am deeply saddened by this event and regret that we will not be able
to continue our commitment to our customers to provide the very best buying
experience on the Internet", said Julie Wainwright, Chairman & CEO. "It is well
known that this is a very, very difficult environment for business to consumer
Internet companies. With no better offers and avenues
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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. We truly
feel that we conducted a lengthy, thorough and thoughtful process to try to
maximize shareholder value."
"We thank our nearly 570,000 customers and hope that you enjoyed your
experience with us, whether it was to read our informative content, or to
purchase toys and food to delight your animal friends. Your feedback, patronage,
and passion for pets inspired us to excel daily. For those of you with
outstanding orders, we would refer you to our web-store for more information.
And to the employees, I want to thank you for your dedication. The entire team
represents the best group of people I have ever worked with."
About Pets.com
Pets.com (Nasdaq:IPET) is the leading online provider of pet products,
information and resources as ranked by Media Metrix, Nielsen//NetRatings, Gomez,
PC Data Online and NextCard eCommerce Index. With nearly 570,000 customers, the
Company enjoys a high repeat rate and strong customer dedication. The company
has offered a broad selection of SKU's, comparing favorably to the product
selection of pet superstores, specialty stores and grocery stores to offer
customers a convenient, one-stop shopping experience. Products are shipped from
two modern distribution facilities, one in the San Francisco Bay Area and one in
the Indianapolis area. In addition, at Pets.com, pet owners can find
authoritative information from pet experts and veterinarians, pet sitters and
more. Pets.com is based in San Francisco, CA, and is led by a team of
e-commerce, operating and pet industry experts.
Forward Looking/Cautionary Statements
Except for the historical information contained herein, the matters discussed in
this press release are forward-looking statements within the meaning of Section
21(e) of the Securities Exchange
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Act of 1934 that involve risks and uncertainties that could cause Pets.com's
actual results to differ materially from those contained in such forward-looking
statements. Accordingly, you should not place undue reliance on these
forward-looking statements, which apply only as of the date of this press
release. Many of the statements set forth in this press release are subject to
the risks and uncertainties discussed below and in Pets.com's registration
statement on Form S-1 and its periodic reports as filed with the Securities and
Exchange Commission. Pets.com may not be able to find qualified buyers for its
assets at prices necessary to generate cash to satisfy its current and future
obligations. Furthermore, because many of Pets.com's assets, particularly its
intellectual property, will decline in value over time, Pets.com may not be able
to consummate the sale of these assets in time to generate meaningful value. In
addition, Pets.com may not be able to negotiate the orderly wind down of its
obligations to creditors. These include, without limitation, long term
contractual payment and performance obligations associated with Pets.com's
building and facilities leases, business agreements with third parties, and
agreements with vendors and shipping services. As a result of these and other
risks, Pets.com may not be able to generate meaningful cash, or any cash, which
could be returned to its shareholders, and the timing of any distribution is
uncertain at this time. Pets.com does not undertake any obligations to publicly
update any forward-looking statements to reflect events or circumstances after
the date on which any such statement is made or to reflect the occurrence of
unanticipated events.
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