Dr. Koop LifeCare Corp, the long-troubled US online health information provider, announced on Sunday that it and its wholly-owned subsidiary will cease operations and liquidate its assets after failing to come up with additional debt or equity financing.
The Santa Monica, California-based company, once a darling of Wall Street, said its efforts to obtain additional financing and sell certain assets had proved unsuccessful, leaving the firm little choice but to shut its operations.
The company said it would file for Chapter 7 bankruptcy protection while it worked through the liquidation process. Shareholders are not expected to see any of the proceeds from the liquidation.
Under Chapter 7 protection, creditors will be paid from whatever proceeds can be generated from the company’s remaining assets.
The company said that its efforts to obtain additional financing and sell certain of its assets – such as its The Vitamin Shoppe retail stores — had not been successful.
Founded in 1998 by former U.S. Surgeon General Everett Koop, Dr Koop aimed to integrate healthcare information with the ability to purchase health products online.
The company’s stock peaked at $45 per share shortly after going public in 1999, followed by a steady descent in share price and unsuccessful efforts to generate predicted revenues.
FuckedCompany.com, the online chronicler of the dotcom deceased, has been selling mouse mats for the past year bearing the legend: "We invested our grandchildren’s inheritance in drkoop.com" (who says Americans can’t do irony?).