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.