CDNow, Inc. was down 1 1/16 to 4 in early trading today after the Wall Street Journal reported that the company’s auditors, Arthur Andersen & Co., expressed doubts about its ability to continue as a “going concern.”
Reports also said the Fort Washington, Pennsylvania-based online music company lost 17 cents a share in the fourth quarter, compared with a 9 cent loss a year earlier. According to the Journal, the company has enough cash on hand to pay its bills until September 30th.
CDNow shares are down from a 52-week high of 23 1/4. An agreement to merge with Columbia House, owned by Sony Corp. and Time Warner, Inc., fell through earlier this month, and the company is continuing to seek a buyer.