An online retailer of household white goods such as fridges in Ireland.

A radio group could diversify into e-commerce and sell fridges and washing machines online at scale in Ireland.

Launched in 2016 by Denis O'Brien's Communicorp radio group as it sought to diversify with online commercial ventures, Appliancesdelivered.ie sold household white goods such as fridges to Irish shoppers.

At the end of 2017 the venture was transferred out of the radio group into a separate O'Brien-linked structure in the Isle of Man. Accounts for Demirca, the immediate Irish parent, showed accumulated losses of about €5.5 million by the end of 2017 — though it is unclear whether all of those losses came from the e-commerce venture or other businesses. Demirca had about 20 staff.

On October 18, 2019, the company announced it was shutting down with immediate effect, citing trading conditions and very challenging market forces: 'Whilst management and staff have done everything to avoid this decision, the business is not sustainable, and the company is now to close.'

It documents a corporate side-project failing on its own economics rather than dragging down its backer.

The €5.5m accumulated-losses figure and the immediate-effect shutdown give the failure unusually concrete edges for a private venture.

The 2017 move into an offshore structure shows the parent re-cutting its exposure two years before the end.

Honouring pre-closure orders is the operational detail that kept a retail collapse from becoming a customer scandal.

A rich parent is not a strategy: diversification ventures inherit the parent's balance sheet, not its operating logic, and market forces price the difference.

As of the October 18, 2019 announcement, the site was closing with immediate effect, outstanding orders were being honoured, and no buyer or continuation plan was announced.

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The sources

  1. Denis O'Brien closes online white goods retailer due to 'market forces' irishtimes.com