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Buy.com may shut down
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August 22, 2001: 5:19 p.m. ET
Online retailer says credit partner to pull out Sept.1, may cause it to close
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NEW YORK (CNNfn) - Online retailer Buy.com must find a new credit card partner or shut its virtual doors.
Buy.com revealed in a Securities and Exchange Commission filing that its credit card processor will terminate their relationship by Sept.1. Since more than 90 percent of Buy.com's revenue comes from credit card transactions, the online retailer may close down unless it is able to ink a deal with another partner.
"If we are unable to secure a new credit card processing relationship on acceptable terms, it is unlikely that we would be able to continue as a going concern," Buy.com said in a SEC filing dated Aug. 20.
Aliso Viejo, Calif.-based Buy.com (BUYX: Research, Estimates) did not reveal the name of its credit card partner.
Buy.com went public during the IPO heyday of early last year, surging 93 percent in February 2000. Buy.com shares, which traded on the Nasdaq, were delisted earlier this month.
The company touts itself as the Internet Superstore, selling computer hardware and software, electronics and wireless products online.
The credit card partner originally informed Buy.com in June of its plan to end its relationship with Buy.com as of July 23.
Buy.com then revised its arrangement with the unnamed processor, allowing them to increase their processing fee by 1 percent and withhold 5 percent of Buy.com's daily receipts as additional security.
The processor extended the termination date until Sept. 1 based on the revised arrangements. 
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Buy.com
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