LetsBuyIt.com Files for Debt Referral and Suspends Shares

02 January 2001

European e-tailer LetsBuyIt.com gained the dubious honour of being the last big tale of dotcom woe in 2000, as it filed for suspended trading in its shares and a deferral of debt payments.

LetsBuyIt.com, launched in Sweden in 1999 but registered in the Netherlands, can apply for a temporary suspension of debt repayments under Dutch law. Although still making a loss, it hopes that an extra 80 million euros will be enough to see it into profitability.

However, LetsBuyIt.com’s Stephen Cox admitted that the extra funding was by no means secure. “We're talking to people but it takes time for these deals to conclude,” he said. “There is no expectation that a deal will be done quickly.”

LetsBuyIt.com works on the premise that the more consumer interest there is in a product, the less the cost to individual customers thanks to the economies of bulk buying. Trading is not expected to be affected by the company’s financial concerns.

News source: BBC Online Business News (UK) [29-Dec-00]