Australian e-commerce retailer Kogan.com has rescued online luxury furniture retailer Brosa from administration.
As part of the deal, Kogan has purchased Brosa’s Intellectual property, goodwill and stock, excluding any leases or liabilities, for A$1.5m ($1.0m).
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Founded in 2014, Brosa delivers practical design-led furniture without the price tag.
The company generated revenues through online, and the Brosa community, which consists of nearly 500,000 subscribers.
Brosa, which was recently valued at over $60m, recorded revenue of $75m in fiscal year 2022.
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Kogan expects the acquisition to strengthen its position in the online furniture market, and benefits both Brosa and Kogan Group customers.
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By GlobalDataThe company will fund the deal from its cash reserves.
Kogan.com COO and CFO David Shafer said: “The acquisition of Brosa by Kogan will broaden the online furniture offering of the Kogan Group, providing unprecedented range and value to Brosa customers, while also expanding the range of furniture and homewares available to Kogan customers.
“We are pleased to be able to offer a lifeline to Brosa customers, to be able to save the Brosa brand, and to relaunch Brosa.com.au very shortly.
“Following years of investment in brand-building and marketing, Brosa is a well-known online furniture brand in Australia, and we are delighted to be able to bring the brand within the Kogan Group.”
Following the acquisition, Kogan.com will relaunch Brosa.com.au with expanded range and value.
The company also commits to resolve unfulfilled customer orders. It will contact them about arrangements in the coming weeks.
Brosa administrator Richard Tucker of KordaMentha said: “Kogan.com is a white knight for the business and particularly customers who are awaiting delivery of orders where the stock was held by Brosa.
“Unfortunately, the Administrators were unable to fulfil these orders due to challenges in the logistics network. Kogan.com is providing a great outcome for customers to get their product where possible and subject to commercial arrangements.”
Arnold Bloch Leibler represented Kogan.com in relation to the transaction.
