Com stock smartened up to the fact that no other institutional investor was going to ride in as a white knight. Behind the fall of pets. Com failure was a result of fierce competition from imitators including petstore. com, petopia. com and petplanet. com leading to aggressive and unprofitable marketing strategies in an effort to grow top line revenue at all costs. Com , the darker story of Com was perhaps a bit too early on this idea. · in less than two years, pets. The shares debuted at $11. Nine months of straight losses convinced the company to fold and sell its The problem with the companys business plan was that pet supplies of all types—food, toys, clothing, and so on—could be found easily at the nearest grocery or pet store. Still, it garnered investors attention, including amazon, who owned about 50% of the company. Com is one of the most notorious dotcom busts. Com attracted big-name investors, such as amazon, despite the red flags in its business model. To pay back investors what they could. During the dot- com bubble, pets. Companies like amazon. Com completed an ipo despite the issues or red flags with its business model, including how to economically ship large dog food bags. Before more losses were incurred. See full list on investopedia. One of the quickest journeys from ipo to insolvency was pets. And the flood of capital that came with it resulted in many back-of-the-napkin business models becoming Granted, amazon has made a gigantic business of doing just that today. Com s sock puppet was so popular that it was a balloon in the 1999 macys thanksgiving day parade. Com went from ipo darling to dot-com disaster, collapsing so spectacularly that its sock puppet outlived the company itself. Com might go down in history as the most disastrous public company of all time. This is the story of how hype, hubris, and the illusion of inevitability created one of the most infamous ipo flops in business history. (ebay) adapted on the fly and survived the bust, but many others went under within months of their It was popular, but went from ipo to liquidation in just 268 days. And tens of thousands of ordinary folks bought into the hype later in the game but lost out to the sharks when the market for pets. Com s credit, it used the funds raised by the Com tried to do the right thing in the end, questions remained about how they ended up conducting an ipo with a questionable business plan. In november, the company declared bankruptcy and closed its doors, with its stock trading at $0. 22 a share the day of its bankruptcy announcement. The company raised $82. 5 million in a february 2000 ipo but filed for bankruptcy nine months later. Given the choice between ordering online and waiting for delivery or walking into the nearest store to buy the product and take it home immediately, the majority of people preferred the latter. Com stood out thanks to its stock puppet mascot and catchy slogan. Com was an american online pet supply retailer founded in 1998 during the dot-com boom. The craze that led to the Banks and their analysts loomed during the internet boom. The company raised $82. 5 million in its february 2000 ipo. (amzn) and ebay inc. Com was one of five online pet stores that popped up during this time. · despite its ipo success, pets. The total time between ipo and liquidation was 268 days. Com was based on an amazon-style internet purchasing system where users ordered pet supplies from the website and the company arranged the delivery. However, the company failed to earn revenue and by the end of october, amazons share had dropped to 30%. Com files for bankruptcy in november, just 268 days after going public, becoming one of the shortest-lived public companies in history.
