RealTime IT News

LetsBuyIt.com Gets Reprieve

LetsBuyIt.com, which filed for bankruptcy this week, Friday was given five days to obtain a cash infusion.

An Amsterdam court Friday told the etailer that it will delay its bankruptcy filing so that the company's management could seek four million euros in additional funding.

According to reports, a cash boost might only give the stricken Web Site a little extra time as the company requires an additional $28 million to avoid forced liquidation.

Talks between management of the failed e-tailer and potential rescue partners Dealpartners.com and CoShopper are still in progress, according to Reuters, and the week's delay could give LetsBuyIt.com some badly needed room to maneuver.

CoShopper Chief Executive Frode Lervik told Reuters CoShopper might still be interested in picking up the pieces, whatever the outcome of the decision.

"We'll be interested in buying their customers," he said. "We've also offered to run their business temporarily, because the value of the customers diminishes every day the business is closed. They say they're very interested in that."

The company, which sells discounted consumer goods through group purchases, has been plagued by problems of late, including overwhelming debt, legal hassles and significant drops in stock shares. On Jan. 4, Martin Coles, the company's CEO, and his board, resigned.

At that time, Tornado-Insider.com reported that LetsBuyIt.com needed 80 million euros to reach its goal of breaking even in the fourth quarter 2002.

While most e-tailers slashed marketing budgets in the second half of 2000, LetsBuyIt kicked off its expensive TV marketing campaign on Oct. 1, according to reports.

The firm said at the time it expected to make approximately 30 percent of its annual sales during the Christmas period.