Following months of financial woes and redundancies, San Francisco-headquartered online loyalty firm Netcentives has filed for Chapter 11 bankruptcy protection.
The company posted net losses of $284 million in the second quarter – more than the $184.7m lost in the whole of 2000 – on $15m in revenue. It was forced to axe staff in April, July and September (when it was delisted from the Nasdaq), reducing its workforce from over 400 to 130.
Netcentives said it would auction its assets next month, and had enough cash to continue operations until then. It also announced it is to sell its E-mail Marketing Group unit to Plum Acquisition.
News source: AdAge.com