The internet retailer LetsBuyIt.com today resumes trading after
being rescued from closure by new investment. A moratorium on the
site, which suspended operations on 29th December, was lifted on
Wednesday last week.
John Palmer, the company’s founder and CEO, says on the site,
“we have managed to secure enough additional funding – commitments
for over £30 million - to see us through to profitability by the
end of 2002.”
As part of the restructuring, offices in seven countries have
been closed and the staff has been reduced from 350 to 150. The
company says it now intends to settle all creditors’ demands, to
refund customers and to fulfil outstanding orders promptly.
LetsBuyIt.com operates a “co-buying” business model. The company
negotiates discounts with suppliers or manufacturers which are
proportional to the number of buyers it can attract on its site.
Items are posted for sale with a price which reduces over a buying
period as the number of users who choose the same item
increases.
