eToys Shuts Down UK Operations Amid Financial Woes

Strategic Insights -

Online retailer eToys, which faced a severe cash crunch, has decided to shut down its loss-making UK operations. The move is the latest blow to the UK e-tail sector, which has witnessed a string of failures since Boo.com's collapse in May. eToys' UK site, which was launched in October 1999, will close on January 19, after a sale that will halve its merchandise prices. The closure of the UK site reflects the company's urgent need to preserve cash, according to analysts.

Key Takeaways:

  • eToys' UK operations will shut down on January 19, after a sale that will halve its merchandise prices.
  • The closure of the UK site marks the latest blow to the UK e-tail sector, which has witnessed a string of failures since Boo.com's collapse in May.
  • eToys' UK site was launched in October 1999 and had sales of $2.5m between October 1999 and March 2000.
  • Most of the 74 staff employed by eToys in London, Swindon, and Lie`ge in Belgium will lose their jobs this month.
  • The US parent company's warning of a possible cash crunch in March sparked concerns about eToys' future.
  • Shares in eToys have plunged from a peak of over $80 per share to 22 cents.

Statistics:

  • $2.5m: Sales of eToys' UK operations between October 1999 and March 2000.
  • 74: Number of staff employed by eToys in London, Swindon, and Lie`ge in Belgium.
  • 22 cents: Price of eToys' shares yesterday.
  • $80: Peak price of eToys' shares.
  • October 1999: Launch date of eToys' UK site.
  • January 19: Closure date of eToys' UK operations.

Sources:

  • "eToys to shut down UK site" by The Financial Times (not explicitly stated in the original text).
  • EToys (Source not explicitly stated).
  • TheStreet.com
  • Hit Entertainment