Letsbuyit.com stops taking orders

Further doubt has been cast on the future of internet retailer Letsbuyit.com, with the company no longer answering telephone calls or taking orders from customers.

Further doubt has been cast on the future of internet retailer Letsbuyit.com, with the company no longer answering telephone calls or taking orders from customers.

This latest development comes just days after the company's entire board resigned, leaving the company in the hands of an administrator and its founder, John Palmer.

Last week, mounting debts forced the Netherlands-based co-operative-buying website to suspend orders on its 14 European sites while funding is sought. The company is believed to be seeking a £50m cash injection to keep the operation afloat.

The firm, which allows customers to join forces to place bulk orders for products, employs more than 70 staff in London and another 250 across Europe.

Bill Hill, managing director of reseller-founded business Office Centre Central (OCC), runs a similar business model to Letsbuyit aimed at the business-to-business market, and has so far proved successful.

Hill explained that OCC's decision to target the business market played a significant role in its success compared with Letsbuyit, whose business model placed increased demands on each customer.

"Letsbuyit.com asks a lot from its customers. They have to propose the purchase, wait for others to join the bidding and are not guaranteed a set price at the end if no one joins in," he said. "We provide our customers with deals they can have the next day for a fixed cost. Individually, resellers buy in bulk so naturally the model is more suited to business."

Ralf Seeley, an analyst at Cambashi, said: "Letsbuyit had an idea that sounded very appealing, but waiting 10 days to see if you get a toaster for £4 or £6 less was never going to work in practice."

Computer Reseller News attempted to contact Letsbuyit through both email and telephone but was unable to get an answer.