Attempts by Boo.com to secure $30m in additional funding from investors appear to have come to nothing, the Financial Times reports. People close to the company believe the high-profile e-tailer will close within days if it does not win a last-minute reprieve.
The collapse of Boo would further erode investor support for business-to-consumer Internet companies, which have already seen their evaluations tumble in recent weeks.
Existing investors in Boo – including Bernard Arnault's Europ@web and the Benetton family's 21 Investimenti – may have finally run out of patience with management, which has 'burnt' $120m worth of venture capital in the past year. While sales have been rising, costs remain too high to make the business viable.