LetsBuyIt.com, the on-line retailer, has managed to secure its
future with € 52m (£33.1m) investment from existing shareholders
and new investors. The identity of the new investors is not known;
however it is thought that they do not include Kim Schmitz, the
internet entrepreneur, who helped LetsBuyIt.com fight off
bankruptcy last month.
This new investment will help LetsBuyIt.com get back on track.
In January, as well as its near bankruptcy, most of the board
resigned including Martin Coles, the chief executive.
The company is still suffering heavy losses. The new chief
executive John Palmer, also the company’s founder, is now planning
the relaunch of the company which will involve some restructuring.
Last week, LetsBuyIt.com announced plans to sack 200 of its 350
staff and close most of its 12 European offices. The company
believes that the new investment and the restructuring will help it
to cover its losses and start making a profit in the fourth quarter
of 2002.
Having suspended trade, the company will re-open its web sites
in the near future, although it is not known exactly when.
