Letsbuyit.com Moratorium Lifted

Share this article:
An Amsterdam court has lifted the moratorium on troubled e-tailer Letsbuyit.com, two weeks after the company found investors willing to put up 52 million euros ($47 million) to keep it afloat.


Martin Nijstad, the lawyer named as spokesman for the law firm that took over the company at the end of last year when it seemed headed for certain bankruptcy, confirmed the end of the moratorium.


He would not, however, reveal the names of the investors who came to the company's rescue. Initially Letsbuyit.com had found 4 million euros, enough to postpone bankruptcy and buy the time needed to find other investors.


While the Web site still does not accept new orders, it did contain explanations of what happened. The 1.1 million customers who used the site's group buying model were told they could safely buy on the site.


The point of the sales moratorium, a special page on the site said, was to "provide a breathing space in which to assess the company's finances, and enabled us to raise the money to continue.


"In fact, the response from investors has been so positive that we have enough funds now to take us through to profitability towards the end of 2002."


But resumption of business will be on a far more modest scale than the high burn rate that marked its activities last year, when it ran sites in 15 countries.


Regular business was slated to begin early this month on sites in Germany, the United Kingdom, France and Sweden. Earlier, the firm had dismissed 200 of its 350 employees.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

Hawk Search Widens its Global Reach

Hawk Search Widens its Global Reach

Hawk Search's solution offers support for more than twice as many languages as other site search providers, according to the company.

Candidates Offer Change In The Form of Targeting

Candidates Offer Change In The Form of Targeting

A campaign for Ben Carson raised $2.8 million despite his lack of cooperation.

Target Names Retail Veteran Brian Cornell as CEO

Target Names Retail Veteran Brian Cornell as CEO

He leaves the top job at PepsiCo Foods to take the spot vacated by Greg Steinhafel in the aftermath of the data breach.