New York based online grocer Kozmo has shut up shop after investors failed to come up with the cash to save the company. The closure comes just weeks after auditors at US rival Webvan expressed "substantial doubt" about its ability to survive the year. At Kozmo more than 1,000 employees have been laid off. Launched in 1998, offering delivery of groceries, flowers and other items within the hour, Kozmo has operations in nine major cities. Chief executive Gerry Burdo cut costs and boosted margins in recent months and business in the largest markets started to make a profit. "Given more time and more hospitable market conditions, Kozmo would have succeeded in rounding the corner," Burdo said. {{NEWS }}