August 13, 2001, 12:00 AM

Webvan finishes initial bankruptcy auction, puts EC platform up for sale

Webvan has already sold furniture, office equipment and material handling systems and now will offer its e-commerce system for sale. Auctions of the assets, though, won’t recover enough for distribution to shareholders, Webvan says.

Kurt Peters

Executive Editor

The bankrupt Webvan Group, Inc. of Foster City, CA, is putting its business units, technology platform and other assets up for sale. Webvan already has contacted 60 potential buyers of the equipment and assets and is soliciting additional bids, due by Aug. 27. Webvan’s state-of-the-art technology platform is the biggest single asset for sale. Developed specifically for Webvan, the platform is modular and capable of a range of functions from a fully integrated e-commerce platform to supporting warehouse management and delivery operations. Webvan, which had in June paid $1.2 billion to acquire rival HomeGrocer.com of Kirkland, WA, also is offering HomeGrocer’s technology platform.

Webvan completed its initial post-bankruptcy auction last week, which included furniture, office equipment and material handling systems from its Atlanta facility. Depending on the outcome of its current solicitation for bids, Webvan will pursue additional auctions for the San Francisco Bay area and Baltimore in late September. Webvan has announced that while it expects to be able to distribute funds to unsecured creditors, asset recovery is not expected to generate sufficient funds for any distribution to shareholders.

 

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