Web portal Excite UK is shutting its operation and shedding its remaining 48 jobs after a last-ditch funding effort fell short .

The portal, a joint venture between BT and bankrupt American broadband provider Excite@Home, had been looking for a strategic partner for the past few months as its business suffered from the online advertising slump.

"The decision to cease trading is both unavoidable and deeply regrettable," said Excite UK managing director Rebecca Miskin. "Our priority now is to our users and our employees and to ensure that the closure is managed in an orderly fashion."

The company said any money left over from the shutdown will be split between BTopenworld, which owns 42% of the venture, and Excite@Home, which is trying to conserve cash in advance of its planned shutdown in the United States at the end of February.

Last week Excite@Home announced it would reduce its US staff by 400, or 30%. It filed for bankruptcy protection in September having closed divisions in France, Germany and Spain during summer.

At its height the 3-year-old US operation captured 40% of the market for high-speed internet access and had 30m users through its network of web sites.

Creditors have spurned a $307m bid by 79% shareholder AT&T for its assets claiming they are worth far more.