Zoe Products Seeks Partners by Want Ad : Firm’s Intentions Aim at Possibility of Merger

Taking a cue from those who seek mates through the want ads, troubled Zoe Products Inc. this week began using the classified section of a national publication to solicit partners for a possible merger.

In a modest advertisement in the Wall Street Journal, the Irvine-based company, which claims to distribute three-wheeled automobiles, said its negative net worth and approximately $8-million tax loss carry-forward are “available reasonably to a profitable private firm looking to go public advantageously.”

So far, Zoe has received about two dozen replies to the advertisement, with interested companies ranging from “very small companies to those with several million dollars a year in revenues,” according to Jaime MacPherson, company vice president and son of Zoe founder James MacPherson.

The controversial Zoe was the subject of a 1984 Securities and Exchange Commission lawsuit alleging securities fraud. At the time of the SEC code violations, Zoe claimed to be in the vitamin business.

Company Enjoined

A federal judge in Los Angeles last May granted a summary judgment against the company and enjoined Zoe from issuing the false press releases which were the basis of the SEC lawsuit.

In 1984, Zoe switched to mini-cars and currently has 10 of the three-wheeled vehicles in inventory but has not sold any, MacPherson said.

“We’re not yet able to bring the cars in,” he said, pointing out that Zoe is seeking federal safety certification for the imports. Moreover, he added, bringing the three-wheeler to market “will depend on financing.”

According to documents filed with the SEC, Zoe lost $2.7 million during the 12 months ended Dec. 31, 1984, compared with a loss of $2 million a year earlier. For the nine months ended September 30, 1985, the company’s losses totaled $520,055, compared with a loss of $897,326 during the like period in 1984.