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.
