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Scoot to Run Out of Cash in One Month

News, 27 July 2001

Beleaguered British online directory company has warned that without new funds it will exhaust its cash supply in one month.

In order to keep operating, it is negotiating a bridge financing facility of as much as £15 million, and will consider selling its Loot classified ads magazine business if the cash position deteriorates further, though the company is unlikely to recoup much more than half the £180m it paid for the unit last July.

The news came as Scoot – which charges commission for directing users to businesses – sold a 50% holding in Scoot Europe to Vivendi Universal for a nominal fee of one euro.

Scoot recently changed its strategy to focus on its UK operations, which it predicts will break even by the end of 2001 [WAMN: 28-Jun-01].

News source: BBC Online Business News (UK)