has become the latest e-commerce casualty after rival eVineyard acquired all of its assets, except for its employees.

In a statement, chairman of the eVineyard board John Grillos said: "eVineyard intended from the beginning to be the undisputed leader in online wine retailing. And we have achieved that with this acquisition."

The acquisition comes just weeks after announced it was streamlining its business and axing 160 jobs, 65% of its workforce.

Reuters reported eVineyard officials said that together and, which it acquired last year, had spent more than $200m in the battle for the internet wine niche. founded in 1994 as Virtual Vineyards was one of the first companies to sell products online with backing from Kleiner Perkins Caufield & Byers and Inc. But today the home-page re-directed visitors to