EO, the last surviving European online new issue distribution platform, is being closed down by NewMedia Spark, the internet incubator, according to sources at the company.

NewMedia Spark is in discussions with a number of parties about a potential merger or sale of EO' s assets, but the company confirmed that the majority of staff had been laid off already or told they will lose their jobs. The remaining £6m (€9.7m) cash in the business is expected to be repaid to shareholders.