Letsbuyit.com reopens for business

Letsbuyit.com, the retail Website that recently won a last minute reprieve from bankruptcy, says it has re-opened for business…

Letsbuyit.com, the retail Website that recently won a last minute reprieve from bankruptcy, says it has re-opened for business in Germany, Britain, France and Sweden.

Letsbuyit said in a statement its product range reflected the preferences of its 1.2 million members, and would leverage its existing contacts with its most important suppliers.

The company said last week that a comprehensive revamp would help it back into the black by the end of 2002 as it slashes costs and pulls out of unprofitable operations.

This follows a four-million euros last-minute rescue package funded by maverick German investor Kim Schmitz just when the e-tailer was contesting bankruptcy in an Amsterdam court, and a further 53 million euros supplied by as yet anonymous lenders.

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The e-tailer's original business idea was to group together customers via the Website and thereby achieve volume discounts, but the company's own margins were squeezed to extinction by marketing and fulfilment costs.

Computer hardware, consumer electronics, appliances, sporting gooods and various consumer services will feature heavily in the new product range.

Letsbuyit will also be branching out into areas such as business-to-business sales, straight catalogue sales, reverse auctions and outlet sales.