Letsbuyit.com to resume trading

Internet retailer LetsBuyIt

Internet retailer LetsBuyIt.com is to resume trading after resolving a financial crisis that had threatened the future of the website.

The London-based operation says a £33 million sterlingrescue package secured earlier this month will be enough to safeguard its future.

LetsBuyIt, known for its TV adverts featuring ants, teetered on the brink of collapse after applying for protection from creditors in December.

Last month, it only staved off a bankruptcy hearing in a Dutch court because it secured £2.6 million worth of emergency funding hours earlier.

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Founder and chief executive Mr John Palmer said LetsBuyIt had emerged "healthier for the experience" and would resume trading tomorrow.

He warned the service, which allows users to join forces to buy a product more cheaply, would need time to build up a stock of products.

In a message to customers, Mr Palmer said he believed the website had a "great" future.

He said: "We have a fantastic opportunity here to build a website and pan-European community without equal. It won't happen overnight, but it will happen much faster than the sceptics can imagine."

Mr Palmer said that all creditors' demands would be settled and pledged to refund those customers owed money before the crisis.

The pan-European service has already announced a restructuring of its operation, with the loss of 200 employees from a 320-strong workforce. A number of European offices will close, although the London base is to remain.