The e-tailer posts a bleak note on its Web site notifying customers that it has shuttered its business and filed for Chapter 7 bankruptcy protection.
Babygear.com is "unable to take orders, ship orders or issue credits," the posting said. "Any further matters will be handled by the court."
Babygear was backed by media site iVillage, which sold its iBaby e-commerce to Babygear in July and took a stake in the company.
Dozens of customers say the company owed them products or refunds. Some customers of Babygear told CNET News.com that they had tried for weeks to obtain refunds after merchandise they paid for never arrived.
Melissa Gelwicks said via email that she paid about $100 for a feeding bib, car seat and music cassette from the company in August. After several assurances by the company that she would be reimbursed, she still hasn't received a check.
"When I tried their customer service number I got a busy signal," Gelwicks said. "Although $100 doesn't seem like a lot, around the holiday season it could be used to buy my children a few more Christmas gifts."