By Joey Gardiner, 24 August 2001 10:48
NEWS Buy.com has been rescued for the second time in just two weeks by its millionaire founder, with a $9m cash injection. Earlier this week the troubled US e-tailer faced closure because the company that processed its credit card transactions threatened to sever its relationship with the firm. According to SEC (Securities and Exchange Commission) filings, 90 per cent of Buy.com's revenue comes from credit card payments by customers. Late yesterday Buy.com announced a new deal for authorisation, processing and settlement of credit card transactions, gained after founder Scott Blum gave cash assurances. The last minute deal saved Buy.com from an uncertain future. This is not the first time Buy.com has been saved by Blum. Earlier this month he announced he would buy back the company from shareholders for $15m, taking it off the Nasdaq exchange. The question is now whether he can keep the firm going in the long term. Buy.com's total value is now just $23m, compared to a $4.9bn valuation on its IPO in February 2000.
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