Selling the Ganley jewels
ENTREPRENEUR Declan Ganley's $25m-valued Adornis.com online retailer has sold off its entire inventory at a vastly reduced price, further fuelling speculation about the company's future.
Ganley has denied that the jewellery e-tailer has shut down, claiming that the business was being restructured. The site is no longer accessible on the Internet and many of its staff have been made redundant. Ganley has said that Adornis.com will be up and running again in a matter of weeks. He was unavailable for comment late last week.
The US value retailer Overstock.com bought most of the stock for about $2m, just a fraction of its retail price. Patrick Byrne of Overstock.com said that the company paid about 40 cents to the dollar for the items.
"They are in a Brinks armoured car travelling from Memphis to Salt Lake City," he said. Mr Byrne said that his company had bought most of the Adornis.com stock; however he understood that some items were returned to the manufacturer. The stock included Italian jewellery, pieces with silver and diamonds and the average retail price per piece was about $300, according to Patrick Byrne.
"I'm not a charity. We get good deals," he commented.
Galway-based Ganley, who is said to have made a fortune in the Baltic markets, effectively owns 40 per cent of the Adornis.com venture, with 20 per cent held by Luxury goods group Compagnie Financiere Richmount, which owns the Cartier and Alfred Dunhill brands. Irish Internet firm Nua, chaired by Ossie Kilkenny, also held 10 per cent. Some $60m was raised in debt and equity financing to fund the venture.
Overstock.com's Patrick Byrne told the Sunday Independent that he was also considering setting up a branch of his privately held value retailing operation in Ireland. "Ireland will be our Omaha beach for Europe," he said. A number of high-profile online retailers have ceased operations in recent months, including living.com, which was headed up by former Guinness Ireland boss Shaun Holliday.