Top execs quit struggling B2B markets player

Ventro, a leading player in the supposedly booming B2B marketplace sector, is teetering on the edge of disaster.

Three top executives are already on their way out of the company following disastrous financial results, with some analysts predicting that the company will go bankrupt later this year. But senior figures at Ventro are putting a brave face on the situation, claiming the company's fortunes will be back in rude health within a year. Ventro hit the headlines in December when it closed two of its marketplace operations, Chemdex and Promedix, and repositioned itself as a marketplace service provider, offering consultancy, advice and support services to exchanges. Neither Chemdex or Promedix made any money during the company's fourth quarter, which ended 31 December. They were shut at a loss of $380m. The company's only income for the quarter was the $300,000 interest earned on its cash surplus of $185m. Analysts warn that the service provider model is not a certain money-spinner and the company could find itself strapped for cash by the end of the year. James MacAonghus, research analyst with Jupiter said: "The service provider model will be their swan song. What they're doing is good on paper, but even if they do get minimum interest it won't get them out of their debt." Ken Vollmer, B2B research director at Giga, agrees that 2001 could signal an end for Ventro. "They don't have too many options. They have to put on a smiley face until they run out of cash." Losses for the quarter ending December 31 rose almost 30 fold to $451.6m compared with same period a year ago. Losses for the entire year have jumped 12 times, to $618m. Mark Lane, European VP of marketing at Ventro, defended the recent restructure, claiming the company was "confident" and that analysts would see positive results within the next four quarters. James Stewart, CFO, Robin Adams, COO and Martha Greer, VP of marketing, are expected to leave their posts by the end of March.