Southwest Bank last week filed suit against St. Louis-
based Sportshuddle.com, a Web site operator that provides
high school sports news to U.S. newspapers, "alleging it had
failed to pay an overdraft balance" of $90,412 on its
commercial checking account with the bank, according to
Peter Shinkle of the ST. LOUIS POST-DISPATCH. The suit
claims that Sportshuddle issued payroll checks last month,
"although there were insufficient funds in the account to
cover the checks." Meanwhile, Sportshuddle "let go" 29 of
its 75 employees a month ago, saying that its investors
"wanted the company to move toward profitability," and is
"poised to cut more staff." Shinkle adds that the company
"may be sold." Sportshuddle CEO Matthew Coen said that the
company had "anticipated raising capital investments by now,
but with investors retreating" from Internet companies,
obtaining capital "no longer seems feasible." Shinkle notes
that the company "previously received equity investments
totalling" $8M from investors including Gateway Venture
Partners and A.G. Edwards & Sons (POST-DISPATCH, 11/22).
