Following last Friday's suspension of LetsBuyIt.com, they have resumed trading but their shares plummeted by 70% on Tuesday morning to 25p. This site allows customers to join and 'co-buy' products at reduced prices.
Last week according to reports, the Amsterdam-based group had appointed a bankruptcy trustee who had to decide whether business should be resumed.
LetsBuyIt, who are not expected to break even until mid 2002, claim that they do have cash 'in reserve' at around £11.3m but are still looking at raising even more cash from both new and existing investors that would then allow them to continue operating. They made a loss of £16.5m in the previous quarter and raised around £42m when it was floated in July, however this was not enough, leaving them with constant cash flow problems.
An existing investor, german media company, ProSieben have already stated that they will not be stepping in to save them as they already own 25.1%.
Currently the website is allowing users to browse the site but not to place any orders.
