Xbidit, the UK channel auction site that sprung up towards the end of the dotcom boom, has suspended operations.

Xbidit founder and MD Alistair Handyside said the directors decided on the move last week after four months of unsuccessfully trying to get the outfit a second round of funding.

But they will not close down the company - and plan to hang onto the Xbidit name for "emotional reasons". The five have already found or are looking for fresh jobs.

When asked if they may re-open the site, Handyside said: "I cannot predict how the market is going," but added that the directors wanted to keep the name to stop anyone else trading under the Xbidit name.

"If you have an IT proposition of any kind, you cannot currently raise cash for it," said Handyside. "The only thing against us was timing."

The Northamptonshire-based company was launched last December by Handyside, who previously worked at Ingram Micro, with backing from venture capitalist 3i.

At its peak, around 1,350 resellers were signed up for the weekly auction service.

Of its other nine staff, Handyside said all except one had found employment elsewhere. The Xbidit switchboard number will be kept open for any warranty or other customer queries. ®

Related Stories

The incredible shrinking Merisel
A surplus of excess inventory sites