Another British dotcom has decided to give up the ghost rather than tough it out in an increasingly difficult marketplace.

MobShop UK - which develops software for group buying Web sites - has said it has "chosen to voluntarily cease trading at the beginning of next year", according to a communication seen by The Register.

However, the "current financial climate, compounded by the time of year, has led us to believe our chance of raising local finances are negligible", the company said.

Although Andrew de Rozairo, MD of MobShop UK, acknowledged the existence of the email, he told The Register that the statement was "not 100 per cent true" adding that the company was "closing down certain parts of the business".

It appears there are still negotiations underway that could affect the outcome.

It's not known how many jobs will be lost or what impact it has on MobShop Inc in the US. ®