Boxman, one of Europe's three largest online retailers of CDs, has ceased trade and is seeking to enter voluntary liquidation.

The company suspended its website two days ago, and is now requesting approval to liquidate from investors and creditors.

It becomes the highest-profile dot.com casualty since boo.com collapsed in May.

The omens have been growing for Boxman. In April, it was forced to cancel a £300m float. And last month it asked existing shareholders to approve the issue of new stock at just 10p a share. This latest round of financing has failed.

"If a massively discounted share sale is the only way Europe's leading online music seller can get financing," asked the Industry Standard at the time, "what hope is there for everyone else?"

But all may not be lost. According to the Financial Times, talks are said to be still in progress with at least one potential buyer.