Value America Files for Chapter 11

Internet computer retailer Value America Inc., whose shares have fallen 93% in the last year, filed for Chapter 11 bankruptcy protection as it closed its online store and fired 185 people. The company said it will reorganize as a business helping manufacturers, distributors and vendors fill online orders and seek payment over the Internet. Value America began business with funding from such investors as billionaire Paul Allen’s Vulcan Ventures Inc. and Frederick W. Smith, chairman of FedEx Corp. The Charlottesville, Va.-based company went public in April 1999 by selling shares for $23 apiece. The shares closed unchanged at 72 cents on Nasdaq. Value America made its announcement after the markets closed.