SUNNYVALE, CA According to a recent report in the Wall Street Journal, Zoho Corp. is seeking a buyer due to financial problems. The report said that the company is running out of funds and that a promised investment in the firm has fallen through. Zoho notified customers that it will stop processing orders for hotel goods at the end of May, unless a buyer emerges. The company is already down to about 25 employees, from a one-time high of about 200, the newspaper reported.
According to the paper, Zoho is in talks with several potential buyers, including Starwood Hotels & Resorts, PurchasePro.com and Avendra LLC. Zoho has retained financial advisors at Arthur Andersen and has sent letters to about 30 potential buyers in the hotel and technology industries. (5/1/01)
SOURCE:The Wall Street Journal