NEW YORK (CNNfn) - Award-winning online furniture store Living.com announced that it will close its doors on Tuesday due to the lack of capital assets required to achieve profitability.|
"After exhausting all apparent alternatives, we have no choice but to file Chapter 7," Living.com's CEO Shaun Holliday, said in a statement.
The company will file for bankruptcy to liquidate its assets in court and lay off 275 employees.
"Despite our employees' tremendous efforts and the loyalty of our customers, the recent downturn in the capital market has substantially impaired our ability to raise capital required to achieve profitability," said Holliday.
Four months ago, online research firm Gomez.com rated the site as the "best online furniture store."
Living.com was launched in July 1999, and this past May, the company formed a partnership with Amazon.com (AMZN: Research, Estimates) to enable customers to access its store through the Amazon site.
Amazon however said the failure of Living.com would not impact its bottom line and did not call into question the aggressive expansion of its product lines.
"We work to support our partners to enhance their likelihood of success. Many partners within the network are doing quite well. When we enter these alliances we look to leverage the strength of our platform," Amazon spokeswoman Patty Smith said.
Smith said Living.com's failure would not have an adverse affect on Amazon's future financial performance because it had already recognized most of the losses.
Shares of Amazon.com ended Tuesday's trading up 2-11/16 at 37-9/16.
- from staff and wire reports