ONE of the North-East's highest profile dotcom companies is to close after failing to convince businesses to use its websites.
Just2Clicks promised to create 250 jobs by providing a virtual link for businesses, helping them work together via the Internet and exchange information.
Founded in July 1999 by entrepreneur Karl Watkin - the man who saved Newcastle's Tyne Theatre - Just2Clicks enjoyed spectacular growth at the height of the dotcom boom.
But yesterday, a grim picture emerged when bosses announced losses of £34.2m in the six months to March 31.
Founder and chief executive Mr Watkin admitted usage ''had been far short of expectations''.
He said he was at a loss to know why businesses were not using the sites, especially as they had offered savings of up to 13 per cent.
J2C, which changed its name from Just2Clicks earlier this year, said it will cease trading and return between £33m and £35m to shareholders.
The company has 5,000 shareholders, and some of the biggest investors could receive up to £4m should they agree to the proposal.
One part of the business, the local authority site BestValueZone, will not shut as J2C is in talks to sell the arm to an unnamed third party.
J2C, based in Newcastle, has reduced its 135-strong workforce to 58 since September.
No further job losses are expected, however, as most employees work for BestValueZone and the remainder will transfer to that site.
If shareholders vote in favour of the proposal in August, J2C could cease trading by the end of October.
It is all a far cry from 12 months ago, when Mr Watkin and his business associate, former Euro MP Alan Donnelly, appeared to be on the verge of millionaire status. The firm was valued at £130m when it floated on the Alternative Investment Market instantly making the two businessmen "paper" millionaires.
Mr Donnelly, who has 1.214m shares, was worth about £1.8m when shares started at £1.50.
This rose to £3.2m when shares peaked at £2.68 - all on an initial investment of £1,260. Since that peak, he has seen the value of his shares wiped out.
In figures released yesterday, turnover for the six months ending March 31 was up from £340,000 last year to £723,000.
However, losses widened from £1.9m 12 months ago to £34.2m after being hit by a £26.5m charge from a restructuring programme.
Mr Watkin said that, although the company had substantial funds, they were not enough to carry J2C over the five years he believes it could take to convince businesses to use the Internet as a trading tool.
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