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Thursday, 2 August, 2001, 11:07 GMT 12:07 UK failures slow
Graphic of computer
Less dot.coms are running out of money
Internet failures in July slowed to their lowest level since September last year, according to new research from US high-tech consultancy WebMergers.

The research said that 32 internet firms shut down or went bankrupt around the world in July, a 30% decline from June. failures
July 2001: 32
June: 58
May: 60
April: 58
March: 44
February: 60
January: 55
December 2000: 49
November: 50
October: 36
September: 22

Source: WebMergers

WebMergers president Tim Miller said the July numbers showed that "the worst of the carnage is over for now".

But he added that closures could gather pace again after the summer is over.

"After the summer, these companies have to decide whether they're going to sink or swim before the [Christmas] season starts," said Mr Miller.

Big flops

The biggest failures in July were the bankruptcies of two US online grocers, Webvan and HomeRuns.

The closure of Scotland's Buchanan International, a provider of internet security products, was the biggest non-US failure, WebMergers said.

Since January 2000, WebMergers said 592 companies have gone out of business, either voluntarily or involuntarily.

Mr Miller estimated that between 5,000 and 10,000 internet companies still remain in operation.

"There's lots of room for more closings," he warned.

See also:

02 Aug 01 | Business
Murdoch buys
01 Aug 01 | Business
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10 May 01 | Business
Making money on the net
24 Nov 00 | Business
Investors turn cold on UK dot.coms
30 May 00 | Business gold rush ends
31 Jan 01 | Business
Europe's web firms keep burning cash
15 Jan 01 | dot life
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