January 17, 2001, 9:43 AM — WESTWOOD, MASS.-BASED STREAMLINE.COM, an online grocery service, announced Monday that it would shut down its operations after failing to secure additional financing.
"This is an extremely difficult market for raising the capital needed to finance Internet retailing businesses," said Timothy DeMello, founder and chairman of Streamline.com, in a prepared statement issued by the company.
"After months of extensive discussions with potential strategic and financial partners, we believe we have thoroughly exhausted all possible options and must discontinue our service," DeMello said.
Streamline.com, founded in 1993, began searching strategic and financial alternatives in May, culminating in the sale of its Washington and Chicago operations to Peapod in September.
The company will continue operations up until the Thanksgiving holiday.
Separately, HouseHold Direct.com, an online warehouse-style wholesale retailer of a wide range of household goods, announced Friday that it has hired Affiliateholdings.com to help it gain access to overseas capital markets.
Streamline.com is the fourth online retailer in eight days to announce that it would shut down. Pets.com, MotherNature.com, and Furniture.com last week all announced their imminent shutdowns.
"The relationship with Affiliateholdings.com provides the international framework for our existing investment banking team so that we can continue to grow the company without having to concern ourselves with the source of capital for each specific round of financing," said HouseHold Direct.com CEO John Folger.