Drkoop.com Files for Bankruptcy

Drkoop.com Files for Bankruptcy

SANTA MONICA, Calif.--The natural productsretailer and educational resource drkoop.com, doing business as Dr. KoopLifeCare Corp. (OTCBB:KOOP), announced Dec. 16 that it and its wholly ownedsubsidiary will cease operations and has filed Chapter 7 bankruptcy. UnderChapter 7, the companys assets will be liquidated, with any proceeds going tothe company's creditors.

In the companys most recent financial reports, total revenue for the thirdquarter (3Q01)--$3.2 million--had been 60-percent higher than the same quarterin the previous year. The company, however, continued having net losses, loggingin $7.2 million for the quarter, which was still an improvement over 2000s 3Qnet loss of $57.9 million. As reported in its 3Q01 report, the company hadneeded additional debt or equity financing to continue operations. However, thecompany's efforts to obtain additional financing and to sell certain assets werenot successful. When the stock market closed Dec. 16, shares were down to $.007.

The company, which was founded in 1998 by former U.S. Surgeon General C.Everett Koop, launched a private label natural products line in November, whichwas to be sold through Shop NBC and The Vitamin Shoppe. It was uncertain whetherplans for this enterprise would go forward, since the company had no comment asof press time.