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LetsBuyIt.com Files for Bankruptcy

Trustees for LetsBuyIt.com, the British-based Internet retailer which filed for creditor protection late last year, Wednesday revealed that the site is declaring bankruptcy.

"LetsBuyit has made a proposal to a party ...it looks positive," an official at trustees Trenitee van Doorne told bankruptcydata.com.

Launched in 1999, the firm encountered financial trouble when it failed to secure $75 million of extra funding last month, resulting in its shares being suspended on Germany's Neuer Markt. Simultaneously, online order taking was suspended. The company been operating with a "provisional moratorium," which under Dutch law is a deferral of debt.

Holly Kirk with Gnash Communications, the marketing firm which handled public relations for the firm, told Newsbytes that Martin Coles, the firm's managing director, along with the rest of the management team, left the company on Jan. 4.

"John Palmer, Leysbuyit.com's founder, has been appointed chief executive, but we understand that the trustees in the Netherlands have now filed for bankruptcy," she said.

A secretary with Trenitee van Doorne, the Dutch legal firm appointed to act as trustees for Letsbuyit.com, confirmed that bankruptcy proceedings had been filed this morning in Amsterdam.

It appears that the company held fast to optimistic hopes till the end. Once its order-taking was suspended, LetsBuyIt.com posted the following statement on its site:

"A decision was taken to cease trading on the site until the Dutch administrators had properly assessed the financial situation. We believe this was a sensible and responsible course of action.

"We strongly believe in the potential of LetsBuyIt.com. Over a million members can't be wrong. We are currently seeking additional funding or a strategic partner to keep the site alive. We are optimistic and hope to resume normal service soon."

Calls to LetsBuyIt.com were not returned as of press time.