Digital Goods To Wind Down Operations

Posted on May 4, 2001

Softlock.com, Inc., operating as Digital Goods, announced a significant reduction of operations. The company has been unsuccessful in its efforts to obtain additional financing. Links to DigitalGoods.com now only bring up a closing down message. The company laid off 39 employees including all vice presidents and the president/CEO, leaving only four employees remaining with the company. Digital Goods provided digital content marketing services for publishers and was one of the distributors for Stephen King's Riding the Bullet.

Softlock has engaged an outside consultant as a special adviser to assist in the winding down of operations. The company also announced that it has engaged the firm of Bramson and Pressman as an adviser to assist the company in maximizing the value of certain intellectual property assets, including the company's portfolio of issued and pending patents, through a variety of potential transactions. These transactions could include the sale, licensing or further development of the intellectual property alone, or as part of a transaction involving the sale of the business, and/or securing a source of additional financing.

In related announcements, Dr. Jonathan Schull, the founder and a member of the company's board, has been appointed to and will assume the titles and duties of president and chief executive officer. He will remain on the board of directors. The company also announced that it has received the resignations all of its directors and further announced that the annual meeting, which was previously scheduled for May 17, has been postponed. The Board has not scheduled a new date for the annual meeting.