Peapod Seeks Buyer
Peapod Inc., an Internet grocery-delivery service, said its cash reserves have fallen to $3 million, and it’s seeking a buyer before its money runs out, according to regulatory filings. Peapod had $3 million as of March 16, down from $3.4 million in cash and $4.7 million in marketable securities at the end of the year, as its costs continue to outpace revenue, the company said in a quarterly filing with the Securities and Exchange Commission. “The company has experienced recurring losses from operations since its inception [and] has historically relied upon equity financings to fund its operation,” Skokie, Ill.-based Peapod’s filing said. Earlier this month, the company’s financial viability was questioned after its chief executive resigned and a group of investors canceled $120 million in new financing. The company was founded in 1989 and went public in June 1997, at $16 a share. The shares, which have fallen 62% this year, closed up 6 cents at $3.25 on Nasdaq.