​​​​A computer glitch led to thousands of items being sold for as little as 1p on Amazon, with businesses warning that they could face bankruptcy as a result.

Between 7pm and 8pm on Friday, items including electronics and clothing were bought for a fraction of their value as news of the glitch spread across social media.

The error occurred in software developed by the third party company RepricerExpress, which automatically re-price items if a cheaper one becomes available elsewhere, in order to help smaller businesses remain competitive.

Judith Blackford, owner of the toy company Kiddymania said she had lost £20,000 as a result of the glitch. "I'm really worried, I haven't slept or eaten all weekend," the single mother told The Guardian. "We could be facing bankruptcy, I don't know what to do."

Another business owner said she had lost over £30,000. "At the busiest time – this was predicted to be our busiest weekend of Christmas – turnover is zero," she said.

Those who snapped up goods at the low prices took to Twitter to share the news. "Amazon are having a glitch on their site and loads of stuff is selling for 1p. I just bought an incense holder, don't even need it," one user wrote.

Others, however, condemned those who took advantage of the technical fault, saying their shopping sprees could force small family owned companies out of business before Christmas.

The Derry-based company has apologised for the malfunction saying it was "devastated and disappointed" by the situation.

Amazon says it was quickly made aware of the problem and managed to cancel "the vast majority" of orders placed for the goods. It said it would not penalise sellers for the cancellations.

"We are now reviewing the small number of orders that were processed and will be reaching out to any affected sellers directly," the company said.

Neil Saunders, the managing director of the retail research agency Conlumino said that the situation "demonstrates the dangers of relying on automated software to determine pricing."

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