"We are definitely closing," said Yvonne Austin, a PDQuick customer service manager who attended one of the meetings executives are holding with employees. An exact closing date was not given, Austin said.
A source close to PDQuick management also confirmed the shutdown. Messages left with several executives Friday were not returned. Mynor Herrera, PDQuick's public relations director, declined to comment.
In recent months, PDQuick began negotiating a potential merger with Kozmo, an online convenience store offering delivery. Talks broke down just a few weeks ago when PDQuick could secure funding from only one of its five investors, according to a source.
New York-based Kozmo shut down just over a week ago.
Sources with knowledge about PDQuick said the privately held company ran out of money.
Investors have generally fled the e-commerce sector, particularly the Web's home-delivery companies. Online grocers such as Streamline.com and ShopLink and Internet convenience store Urbanfetch are just a few that have shut their doors during the past year.
Camarillo, Calif.-based PDQuick operated 16 brick-and-mortar stores in the Los Angeles area and has delivered groceries ordered by telephone since 1987. But last year, PDQuick, formerly called Pink Dot, pinned its hopes of national expansion on the Internet.
In June 2000, PDQuick received $20 million in funding from backers that included GE Capital Group and said that it would branch out to 30 cities. It did open new operations in Maryland and San Diego.
PDQuick's pending closure was first reported by Digital Coast Daily.