Faced with mounting debts and disenchanted customers, CompuSave Corp. of Irvine said Tuesday that it will permanently close its electronic retailing operations today and will need an additional $4 million to pay its debts and stay in business.
The announcement came as the company said it suffered a $2.4-million loss in its fiscal second quarter, ended Nov. 30. The latest red ink brings the ailing company's losses since May, 1984, to $9.8 million, nearly equivalent to the $10 million the company raised in two stock offerings.
Although the company's announcement late Tuesday was a revealing chronicle of CompuSave's current financial woes and choices for the future, it did not discuss the possibility of filing for bankruptcy or reorganization and did not mention a court hearing scheduled for today on a creditor's efforts to freeze the company's assets for non-payment of debts.
CompuSave officials could not be reached to elaborate on the statement.
The announcement, however, said the company's cash as of Nov. 30 totaled $465,000, an amount that included $453,000 pledged as collateral. The cash balance had declined from $1.2 million as of Aug. 31. The company said, however, that cash and cash equivalents had risen to about $520,000 as of Monday but made no mention of any pledged as collateral.