Urbanfetch Will Give Up Their Offices and Warehouse Upon Dissolution of Company

NEW YORK CITY-Considered an asset by patrons who could have food, DVDs, CDs, electronic equipment, over-the-counter medicine, wine, books and company logo bearing merchandise delivered to them at home or work for free in Manhattan and Brooklyn join the sentiments expressed on Urbanfetch’s Web site, where a yellow crying face bids customers a fond farewell. Urbanfetch is closing its online delivery service and selling off its assets. The company will vacate its corporate offices and its warehouse.

The news follows reports that Urbanfetch was in negotiations with Kozmo.com, its only competition, to merge. Kozmo reportedly abandoned plans to acquire the company they once sued for stealing its business plans because of weak finances. While Kozmo claims to have adequate financial backing from various investors, Urbanfetch was suffering from a lack of capital. Now it is slashing prices on existing merchandise and requiring a $60 minimum order for delivery. It will move out of their corporate offices at 538 Broadway and its warehouse at 560 W. 34th St. About 160 employees will be laid off, 60 of them in the London satellite operation.