By Ben King, 14 August 2001 08:10
NEWS The proceeds of asset sales at bankrupt US web retailer Webvan will not go to shareholders, but will be used to pay former chief executive George Shaheen a $375,000 pension for life. The company has been auctioning off a range of assets with a book value of $1.2bn - enough to pay off a range of unsecured creditors, including Shaheen, but not equity holders. Shaheen joined the business in September 1999, stunning the business world by resigning from his post as chief executive of Andersen Consulting (now known as Accenture). He left Webvan in April this year. The company raised $1bn to build a nationwide internet grocery business at the height of the internet boom. Webvan built a significant customer base but never made a profit, and filed for bankruptcy last month, ceasing operations and sacking 2000 workers.
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