To Auction Off Assets in November

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CHICAGO ( -- Online loyalty company Netcentives, San Francisco, filed for Chapter 11 bankruptcy protection Tuesday, following financial troubles that began last year and several rounds of job cuts.

The company plans to auction off its assets in November, and said it has sufficient cash to finance operations and employee obligations until that time.

Netcentives in 2000 reported net losses of $184.7 million, followed by first-quarter losses of $41.6 million on $17 million revenue, and an even greater net loss of $284 million in the second quarter on $15 million in revenue.

Had 345-person workforce
In April, the company announced its first restructuring plan, which included letting go 120 employees companywide -- about 20% of its workforce -- and reducing administrative and travel costs, while also lowering 2001 revenue expectations. In July, Netcentives had a second round of layoffs, cutting more than half of its 345-person worforce to 180, in the hopes of further reducing debt.

Two months later it again trimmed its staff to 130, after it was delisted from the Nasdaq at the beginning of September because its stock was trading below the $1 minimum-price requirement. The company's 52-week high of $10.17 occurred last October.

To sell E-Mail Marketing Group
In addition to filing for bankruptcy, Netcentives also said it has entered into a deal to sell its E-mail Marketing Group, formerly called Post Communications, to Plum Acquisition Corp.

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