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Gazoontite Scraps Online Sales

October 11, 2000

SAN FRANCISCO (AP) _ Gazoontite.com, a purveyor of dust-free products for asthma and allergy sufferers, has filed for Chapter 11 bankruptcy protection, citing weak online sales.

The Web-based company will keep its five brick-and-mortar retail stores open while it reorganizes, but has ceased selling products online.

``Business has been fantastic for hypoallergenic bedding, air purifiers and other products,″ said Shannon Barnes, manager of Gazoontite’s flagship store in San Francisco. ``We got rid of the dot-com, but on the retail side, it’s business as usual.″

Gazoontite filed for Chapter 11 protection last Thursday.

The company fired about 80 percent of its workers, paring the staff at its San Francisco headquarters to less than a dozen. Those released included chief executive Daniel Korn.

Gazoontite had planned to open 15 new retail stores by year’s end, but that expansion is now on hold.

The company went through more than $25 million in private financing before running into problems raising additional funding, according to the company’s attorney, Stephen O’Neill.

Gazoontite was founded by former Clorox brand manager Soon-Chart Yu and launched on April 1, 1999.

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