The bandwagon has claimed its latest victim.

Online home furnishings retailer is filing for bankruptcy despite enjoying a close relationship with blamed a downturn in capital markets for its inability to raise further investment.

The demise of the online retailer calls into question the whole business model, which has fleshed out its product line to include toys, video and even gardening equipment.

Back in the heyday of February, the Texas-based company agreed to pay Amazon £100 million over five years for the privilege of becoming a premier retailer on the bookseller’s home page.

As part of the deal Amazon acquired an 18 per cent stake in

"We regret that circumstances beyond our control have forced us to discontinue operations," said in statement on its web site.