B2B: Chemdex and Promedix going out of Business

Ventro Corporation Announces Restructuring of Ventro Operations to Focus on Marketplace Service Provider Model

12-Dec-2000

Mountain View, Calif. - December 6, 2000 - VentroTM Corporation (Nasdaq: VNTR), a leading business-to-business (B2B) marketplace service provider, today announced the details of its corporate restructuring. Ventro previously announced its intention to seek alternatives for its Chemdex Life Sciences marketplace and Promedix specialty medical products marketplace. The company's Board of Directors, after assessing the proposals received, has determined that it is in the best interest of shareholders to shut down both Chemdex and Promedix in an orderly manner. As a result, Chemdex and Promedix will initiate significant layoffs beginning December 31, 2000, to be completed no later than March 31, 2001. Ventro expects that its industry partners will make arrangements to meet the e-commerce needs of the participants in the discontinued marketplaces. The company expects to record aggregate restructuring charges of approximately $380 to $410 million in its fiscal year-end results in connection with these activities. The charges will include estimated costs for reductions of approximately 235 personnel at Chemdex, Promedix and Ventro. The charges will also include amounts for write downs of certain operating and intangible assets, including goodwill associated with various acquisitions, costs of canceling certain contracts and charges for certain other restructuring liabilities. The ultimate amount of restructuring charges will be finalized in connection with the company's year end close. Ventro estimates that future cash outlays for operating activities will be reduced by 50% after the restructuring is completed. "As Ventro moves forward we will continue to provide technology and services to marketplaces in partnership with leading industrial players, as we have done with our MarketMile, Broadlane, Industria and Amphire joint ventures," said David Perry, President and CEO of Ventro Corporation. "The decisions related to the restructuring, however, have been difficult ones to make, particularly as they impact many of our employees and the efforts they have made to build groundbreaking B2B marketplaces. But we must respond to and anticipate the rapidly changing landscape of B2B e-commerce and it is clear we can be most successful focusing on the marketplace service provider model in partnership with brick and mortar companies."

https://www.chemeurope.com/en/news/497/b2b-chemdex-and-promedix-going-out-of-business.html