Lycos Europe is to close down after failing to find an investor. The company plans to sell some of its assets and close the rest.

Lycos Europe currently provides Internet search, Web hosting, email, social networking and online shopping tools. It has a staff of nearly 700, two-thirds of which are based in Germany.

The company is said to have struggled with fierce competition from search engine giants such as Google and Yahoo and posted a net loss of 17.1 million euros in the first nine months of the year.

The move will need to be approved at a shareholder meeting mid-December.