Boo.com calls for liquidators

The online sportswear retailer Boo.com has failed to secure the funding needed for the company restructuring and was forced to call in for liquidators.

Boo.com has spent $135 million, which it raised 6months ago, and failed to convince its shareholders, who include Bernard Arnault, the French entrepreneur; the Benetton family and JP Morgan, to provide further support. KPMG has been appointed to oversee the liquidation.

Ernst Malmsten, Boo.com Chief executive, said: “We have been too visionary. We wanted everything to be perfect, and we have not had control of costs. My mistake has been not to have a counterpart who was a strong financial controller.”

The collapse is likely to fuel investors’ worries about the future of their investments in Internet start-ups, especially in the Business-to-Consumer sector.