Letsbuyit suspends Neuer Markt share dealings

Share dealing in online retailer Letsbuyit.com has been suspended and the company has stopped taking orders as it attempts to raise more cash.

LONDON (Brand Republic) – Share dealing in online retailer Letsbuyit.com has been suspended and the company has stopped taking orders as it attempts to raise more cash.

Letsbuyit.com’s Dutch holding company has applied to a court in the Netherlands for deferral of debt payments –- a legal move similar to the US’s Chapter 11, which protects companies from creditors as it seeks a buyer or additional financing. The company is due to meet a court-appointed lawyer today.

Letsbuyit raised €66m (£41.6m) from its flotation on the German Neuer Markt in July, but this was only about half of what it had hoped to raise. It is understood to have about €20m (£12.6m) left in the bank, and has been trying to raise a further €80m (£50.4m) in additional financing in order to remain afloat.

This could involve a strategic partnership with an established retailer. Martin Coles, Letsbuyit.com’s chief executive, said that the company was in talks with three or four interested parties. Job cuts among its 350-strong workforce are also expected.

The company made a loss of €26m (£16.3m) in the third quarter and cut 20% if its staff in August. Letsbuyit blames its problems on the disappointing flotation and on the difficult dotcom climate, which makes it hard to find additional backing.

www.letsbuyit.com



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