Boo.com, the ‘active streetwear’ online retailer, has launched its first sale, cut jobs and axed its online magazine.
The move fuelled speculation that the bubble surrounding e-commerce and the internet is about to burst. One of last year’s high-profile launches, Boo trades across 18 countries in 18 currencies and seven languages, allowing consumers across the world to buy the latest look via the Internet.
Founders Ernst Malmsten, Kajsa Leander and Patrik Hedlin are understood to have spent £10m on the launch. Ernst Malmsten and Kajsa Leander are well known in the world of e-commerce, having previously set up bokus.com, the third-largest Internet bookstore. The company was backed by Bernard Arnault, the French billionaire, Benetton the fashion retailer and investment bank JP Morgan.
Boo plans to launch a new, lower band-width web site in March to run in tandem with its existing site, which requires a high-power modem connection. The online magazine will be integrated into the main web site.
Kajsa Leander said: "I think it's merely media speculation about the so-called internet bubble. At Boo.com, we made some strategic internal organisational decisions as companies from every sector do every day, and now people are writing about the death of a whole industry that is, like Boo.com, actually growing globally and rapidly in robust and tangible terms".