Izodia, the B2B internet collaboration firm formerly called Infobank, has given up the ghost after failing to agree rescue terms with potential bidders.

The firm's board this week announced its decision to close the business, including its UK operations.

A statement concluded that the board did not believe "a standalone operation based around the InTrade software is viable in current market conditions".

The board said it hoped to return the company to cash as soon as possible and may look for a listing on the Alternative Investment Market (AIM) as a cash shell.

Martin Frost, Izodia's executive chairman, said that firms simply wanted to do business with more-established players in the current market climate.

"We have made every effort to extract value from the business for the benefit of shareholders and employees, and we have been unsuccessful," he said in a statement.

"While a matter of regret, this is - in my opinion - not a reflection on the quality of our project, our product or our people but more to do with the current lack of confidence, particularly in our market space, and the desire of customers to deal with larger and more-established companies regardless of the underlying product quality," he added.

The company's directors said they estimated that the eventual cash position, net of creditors, would be between 45p and 52p per share.

But they warned that it could take some time to achieve that position "as the company has significant potential liabilities associated with the business where a negotiated settlement is desirable."