LetsBuyIt Wins Five-Day Reprieve

23 January 2001

LetsBuyIt.com on Friday won a stay of execution from an Amsterdam district court on an application by its legal trustees to put it into bankruptcy [WAMN: 18-Jan-00]. The court gave the comatose etailer just five days in which to come up with the four million euros needed to pay the fees and costs of its trustees, Dutch legal firm Van Doorne.

Raising the cash, said Letsbuyit founder and acting chief executive John Palmer, “is going to be tough". He added ruefully: "There is probably more chance of raising the 40 million euros needed to take the company through to profitability than the E4m.”

But, asserted Palmer, the company had won its arguments to the court because “our financial position is nowhere near as bad as people tend to say and we have got strong investor sentiment.”

However the successful plea to the court almost certainly owes more to the intervention of the company’s biggest creditor, call centre and logistics company Sykes Enterprises, which filed a formal objection to the proceedings on the grounds that creditors had not been consulted. A similar protest was lodged by one of LetsBuyIt’s largest shareholders.

News source: Financial Times