09/11/2002 11:00PM

Youbet founder leaving post


David Marshall, the founder of Youbet.com, said on Thursday that he is stepping down as chief executive of the beleaguered company. He will be replaced by Chuck Champion, the company's current president and chief operating officer.

Marshall, who returned to Youbet in March this year after a three-year hiatus, bringing with him a $750,000 loan to the company, said that he will continue to serve on Youbet's executive committee and on the board of directors.

In a statement, Marshall said he will focus on strategic planning and business development, including raising cash for the company.

Youbet officials did not return a phone call requesting comment.

Youbet's stock closed on Thursday up 2 cents, to 58 cents.

Youbet, which operates one of the leading national account-wagering systems, has not posted a profit since being founded. In the first six months of this year, Youbet lost $5.4 million on revenues of $8.6 million. Officials for the company have said that they will need to raise more cash to continue operating and reach profitability.

According to Youbet's most current balance sheet, produced at the end of the second quarter on June 30, the company has $4.73 million in cash, but it also has $8 million in liabilities, including $6.7 million in accounts payable. In the previous quarter, accounts payable were $4.1 million.