Staff get the Boo-t

Boo two: Kajsa Leander and Ernst Malmsten

Liquidators of Boo.com have made 220 of its staff redundant as they seek to find a buyer for the business.

The accountants from KPMG now running the London-based firm, said they were still holding talks with a number of potential buyers of the company which sells sports and fashion clothing over the internet.

There remains the possibility that a successful sale will not be achieved and the liquidation will continue to its conclusion

KPMG's Mick McLoughlin

They said the staff cuts - which leave a skeleton staff of 30 - were essential to stem the losses at the company.

Talks with potential buyers had begun at the weekend and were continuing, they said.

Mick McLoughlin of KPMG, said: "To protect the remaining funds, we have today had no option but to make some 220 redundancies among the company's 250 staff.

"We are looking towards making a decision on a possible sale of the business in whole or in parts within days.

"But there remains the possibility that a successful sale will not be achieved and the liquidation will continue to its conclusion."

Boo.com, was founded 18 months ago by the model Kajsa Leander and fellow Swede Ernst Malmsten. About £80m had gone into the company since its inception, but now £17m is owed to external creditors, many advertising companies and delivery firms.

The founders had been hoping to raise more finance from their backers, but were forced to call in the liquidators when their appeals for fresh funds failed.

KPMG said it had received more than 30 inquiries from potential buyers.

One of Boo's strongest selling points was expected to be the computer systems it had developed to serve customers in 18 countries.

On Friday Mr McLoughlin had said that Boo's infrastructure had "a huge capacity", which would represent "a real point of interest for potential buyers".

Boo.com was forced to call in the administrators on Thursday, after investors failed to provide the firm with a fresh cash injection of $30m (£20m).

£1m cash deposit

The number of bidders also dropped sharply after KPMG asked them for a £1m ($1.5m) deposit to prove the seriousness of their intentions.

The doors at Boo's posh Carnaby Street headquarters could close for good by Wednesday if no buyer is found.

Boo's website was one of the most sophisticated retail sites on the web - although its cutting-edge technology was one of its downfalls.

Users needed computers with the latest web software to use the site and high-speed internet access if they were not to endure long waits for pages to load.