Clickmango lives on

Actress Joanna Lumley was an investor in Clickmango

Struggling online retailer Clickmango, identified by many with the image of its highest-profile investor, the actress Joanna Lumley, has been given a stay of execution.

The e-tailer of health and beauty products is to continue trading past its planned closing date of the end of August.

We're feeling cautiously optimistic that an extra month might give us enough time to conclude negotiations with one of the white knights who have made approaches

Robert Norton
Clickmango

The company says it has enough cash to extend operations into September after being given more leeway by major creditors while negotiating terms for ending its contracts.

It is hoping that a rescuer may yet appear to save the company - especially given the 20% increase in sales and four-fold increase in site traffic in the past week.

"We're feeling cautiously optimistic that an extra month of operation might give us enough time to conclude negotiations with one of the many blue-chip white knights who have made approaches this week," co-founder Robert Norton said in a statement.

Money needed

Clickmango said last week it was winding down its business in an orderly manner to ensure that it paid its staff and creditors in full.

That would be in contrast to the chaotic collapse of free-spending high profile e-tailer Boo.com, which failed in May.

Mr Norton said Clickmango had needed to raise £300,000 ($500,000) in bridging finance.

Clickmango was founded last September by Mr Norton and Toby Rowland, son of the late tycoon Tiny Rowland.

The company quickly raised the £3m it needed for its April launch but has since been unable to raise an additional £300,000 needed to keep the company going until the autumn.

Investor sentiment

Mr Norton was keen to distance the company's failure from that of Boo.com.

"This is not Boo Two. We still have money in the bank, and we have not spent a fortune on advertising. We have made the decision to wind down the company in a responsible fashion to make sure creditors and staff get full payment," he said.

Many internet companies have found it difficult to raise the cash they need to continue doing business since investor sentiment turned against technology stocks earlier this year.

Actress Joanna Lumley invested in the company and became its figurehead when it was launched. Her contract would be honoured, the two founders said.