Boo.Com, the Failure

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INTERNATIONAL BUSINESS;, Online Fashion Retailer, Goes Out of Business By ANDREW ROSS SORKIN Published: May 19, 2000 It was supposed to follow the dot-com fairy tale script. Two young entrepreneurs devise an idea for the next big e-commerce Web site, raise enormous sums of cash, spend lavishly on advertising, lose money on every sale, take the company public and make every employee a billionaire. Today,, a European fashion e-tailer backed by the French luxury goods magnate Bernard Arnault, the Benetton family, Goldman, Sachs & Company and J. P. Morgan, among others, is insolvent and has been forced to call the liquidators, six months after its Internet debut. The concept for seemed plausible enough. Ernst…show more content…
Arnault refused to discuss Whether 's failure presages further problems for clothing e-tailers is unclear. But some Internet analysts said 's rise and fall reflect a problem that goes beyond just selling clothes. . ' 'The market has woken up to the fact that the amount of business e-tailers like generate is a lot lower than we anticipated, ' ' said Tony Shiret, an analyst at Credit Suisse First Boston in London. ' 'A key turning point was what happened in the U.S. over Christmas, ' ' he added, referring to many online retailers that reported missed sales projections. ' 'It 's been disappointing. ' ' On Wednesday, PricewaterhouseCoopers released a report predicting that 25 percent of all Internet companies in Britain could exhaust their cash within six months. Still, the problems at problems were somewhat self-inflicted, Mr. Yasskin said. ' 'They tried to do too much, ' ' he said. ' 'Opening up in multiple countries simultaneously is impossible. ' ' One major stumbling block for may simply have been the type of merchandise it was trying to sell. ' 'If you look at successful sites, they are driven by price, ' ' Mr. Shiret said. ' 'It is very hard to sell clothing at a cost base that makes sense without the scale. ' ' Indeed, never competed on price like most other retailers; it hoped to woo customers with its interactive services and convenience. Nonetheless, might be worth something, even
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