Company history - LetsBuyIt

1999 Jan: Launched in Sweden Apr: Opens first site, in Sweden 2000 May: Opens Irish site, 14th in Europe July: Floats at price of 3.50 euros. Shares reach 6.50 euros on first day of trade Aug: Sheds 20% of staff Dec: Seeks court protection from creditors. Administrators appointed. Stops taking customer orders. 2001 Jan: Board resigns, files for bankruptcy

Rising sales

Some analysts argue that LetsBuyIt had a good business model, but it simply ran out of cash before it had the chance to prove itself.

Ironically, the firm recently reported record fourth-quarter sales, thanks to strong pre-Christmas trading.

Total European sales for 2000 would be five times as high as those for 1999, the firm said.

Similarly, eToys reported that European Christams sales had more than doubled.

But increased trading does not necessarily spell success.

Internet start-ups need to make a big enough profit margin on their sales to pay-off the high costs of setting up a new business.

And dot.coms have to turn their business around before the investor funds are used up and there is no money left to keep operations running.

Despite the large number of sales, LetsBuyIt was still running at a loss and needed extra funds on top of the 66m euros raised on its flotation last summer to see it through to profitability.

Shy buyers

Timeline - eToys

1996: Founded by Toby Lenk, a former Walt Disney executive 1997: Site, selling 1,000 items, goes live on 1 October 1999, May: Floated on Nasdaq 1999, October: Shares reach high of $84.25 1999, October: UK site launched 2000, December: Shares fall below $1 following profits warning 2000, January: eToys to cease European trading and sells off stock

There seemed to be some hope for LetsBuyIt earlier this month when two possible suitors emerged.

And shares in the online store doubled on Friday 12 January when two rival firms revealed they were considering takeover plans.

But despite the high expectations, neither French-based Dealpartners.com nor Norway's CoShopper came forward with a firm bid.

LetsBuyIt, while listed on Germany's tech-heavy Neuer Markt exchange, is managed in London and registered in Amsterdam.

It was founded in Sweden in January 1999 by entrepreneurs including John Palmer, a former Mattel Toys executive who took control of the firm a week ago when the board resigned.

LetsBuyIt has a market value of 7.53 million euros compared with 115 million euros just six months ago.