CityReach goes under

How to burn £250m in two years...

Web hosting company CityReach International has gone into administration less than a year after raising £106m in funding. CityReach had received almost £250m in the last two years from investors including JP Morgan and Microsoft founder Paul Allen. The company cited a disappointing take up of its corporate web-hosting services as one of the reasons for failure. The company, which owns eight internet data centres across Europe, yesterday appointed KPMG as its UK administrator to look for buyers for the five largest centres. The other three centres are likely to close.