Friday, February 11, 2011
MyShape Runs Out Of Cash, Shuts Down
Los Angeles-based MyShape, the online personalized fashion and women's clothing firm, has shut down. According to a message on the firm's site, it is "temporarily suspending its retail operations" and is no longer offering products. According to sources near the firm, the firm has sold off its inventory and is now hoping to find a buyer for the company via an assignment for the benefit of creditors. MyShape apparently had run out of money three times between April and November of last year, was unable to garner enough support from its existing investors for more cash, and had hired an investment bank to sell the company, unsuccessfully. Apparently, the firm is now being shopped by Sherwood Partners, which specializes in assignment for the benefit of creditors and shutdown and liquidation of failed technology companies. MyShape had raised north of $36M in funding from such investors Draper Fisher Jurvetson, Lehman Brothers Venture Partners, Pasadena Angels, Tech Coast Angels, and Tenaya Capital. The company had developed a system to help women find clothing based on their shape and size, matching that to specific designers and clothing that most flattered their figure.