The future of beleaguered Internet retailer Letsbuyit.com NV may well be decided today as it meets with a court-appointed bankruptcy trustee. One outcome would be for the Amsterdam-based company to cease operations permanently.
Despite announcing promising sales figures for the fourth quarter on December 28 - well up on the same period last year- the Neuer Markt-listed company filed for protection from creditors on the following day and has stopped taking orders. Its website is currently only open for browsing.
The company, which lets customers join up to ‘co-buy’ products at reduced prices, is not expected to break even until 2002. And unless it receives a large injection of cash - needed to make up the shortfall between the revenue gained from its uninspiring flotation in July and the estimated 180 million it will need to become profitable - its future looks bleak.
As with with other embattled dotcoms and e-tailers, Letsbuyit’s recent attempts to court the investors have met with a cold reception. Shareholders proved reluctant to part with their cash when the company asked for extra funds in November.