Struggling Internet retailer Letsbuyit.com was granted a much-needed stay of execution today as an Amsterdam court delayed by a week its decision on a bankuptcy filing.
This brief respite will give debt-laden Letsbuyit's management the chance to seek euro 4 million ($3.76 million) in additional funding, but even such a cash boost might only give the stricken Website retailer a little extra time.
Sources close to rescue talks said that Letsbuyit would need to find an additional $28 million within two weeks to avoid forced liquidation.
Letsbuyit's business model of selling discounted consumer goods by grouping together customers to get volume discounts was regarded by industry analysts as basically sound, but in common with other e-tail flops the company simply ran out of cash.
Talks between management of the failed e-tailer and potential rescue partners Dealpartners.com and CoShopper are still in progress, sources close to the companies said, and the week's delay could give Letsbuyit some badly needed room to maneuver.
Several potential white knights have been in discussions with the Dutch trustees of Letsbuyit's debt moratorium on a possible rescue package. These include the Norwegian cobuying retail Website CoShopper, and French-owned Dealpartners.com.
Reuters