European auction website QXL will pull down the shutters on its UK division at noon on 30 May.

The last day that it will be possible to list an item on the UK site will be 9 May and all bidding and selling will end on May 19. Then the clearing up process will begin and all accounts will be closed at the end of the month.

The company has written to its users telling them of the development: "We would like to inform you that we have decided to withdraw from the UK market and close the QXL.co.uk site.

"We request that those members who have an outstanding debit balance settle their accounts as soon as possible. We would like to take the opportunity to thank everyone who joined the QXL auction community in the previous 10 years and thank you for your custom and loyalty."

It also warned that QXL voucher credits have no monetary value so will not be refunded.

Rumours of a buyout of QXL began late last year with its stronger rival Ebay named as a possible bidder. Although QXL confirmed that it had been approached, it would not identify the company behind the preliminary bid.

The company will maintain operations in Bulgaria, the Czech Republic, Denmark, Hungary, Norway, Poland, Romania, Russia, Switzerland and the Ukraine.

The news follows research from Point Topic that online auction sites are suffering a downturn in popularity, not helped by the rise in fraud committed on such sites.