Tempz.com seeks new investment - 04/2001

Tempz.com, is urgently seeking new investment as its original investor, Ci4net, is unable to provide essential funds due to market conditions. Initially promised 10m over three years, tempz.com has received funding for the launch but has not received second phase funds essential to allow the agency to reach profitability. In the light of this, CEO, Chris Leonard, is exploring all avenues to secure the future of the business.

Tempz.com was launched in April 2000 and has successfully developed a unique low cost service delivery structure integrating Internet and telephony technologies with call centre and field based sales and customer service staff - a hybrid business model which many industry observers believe will define the future shape of UK generalist staffing companies.
Leonard commented This is particularly sad for us as we have developed a powerful new business model and are on track to reach profitability in twelve months. We are not a typical 'dotcom' - we have all the ingredients necessary to build a successful business except the funds. However, there is a lot of interest in tempz and we are hopeful that a refinancing deal will be closed soon.

The dramatic downturn in technology stocks over the last few months and the resulting negative market sentiment towards dotcoms in particular, has led to Ci4net being unable to raise the funds needed to support tempz.com as originally planned.

This initially held back the development of the business but now the company has been forced to downsize to the minimum level needed to maintain essential services and systems. If new investment is not forthcoming Leonard says that they will have to close the business within weeks.

On an upbeat note he added, we believe in our business model, and critically, people outside of our business believe in it also. The market is ripe for the introduction of a new low cost service infrastructure that integrates the best of the new with the best of the old. And if, through no fault of our own we don't succeed first time round - we'll be back!

www.tempz.com