eToys to close down European operations

US web retailer eToys is to close its European operations later this month after a disappointing Christmas season.

European marketing director James Bidwell said the move reflects slower than expected third quarter sales in the US and difficult market conditions in Europe.

He said: "We are proud of what we have achieved but we are the mercy of conditions beyond our control."

Bidwell confirmed that all 74 employees will be laid off, most when the website closes on 19 January, but with a small team of staff remaining to wind down the business.

The company joins a growing list of internet failures in Europe. The future of bulk shopping service LetsBuyIt.com remains in doubt after it applied for protection from creditors last week to buy time to secure more funding.