LetsBuyIt.com to Apply for Bankruptcy Tomorrow

18 January 2001

On the verge of becoming Europe’s largest-yet etail bankrupt, LetsBuyIt.com will tomorrow file for bankruptcy at an Amsterdam court.

If the court agrees to the motion, the etailer’s creditors – held at bay since the end of December – will close in. Investors, who between them have contributed some 180 million euros ($169m), will almost certainly not recover a single penny.

However, an unidentified creditor is threatening legal action against LetsBuyIt’s court appointed trustees to block the bankruptcy process. Says the dissenter: "We signed an agreement with the trustees which gave Letsbuyit until March 8 to sort out its financing. We have not been consulted regarding the change and believe it is in our long-term interests to give Letsbuyit the chance to continue trading."

If the bankruptcy request is granted, Letsbuyit has little more than one day to raise the money it needs to continue trading.

The company’s founder and acting chief executive, John Palmer, also slammed the decision of the trustees, Dutch legal firm Van Doorne: “We were told on Friday we needed a E4m bank guarantee by Tuesday at 5pm . .. but to raise E4m in two days it doesn't matter who you are - it is a lot of money."

News source: Financial Times