The online furniture and homeware retailer announced last week it had fallen into voluntary administration, today Kogan.com has revealed it has purchased the company.
Kogan.com has purchased the Brosa business out of administration. The company is reporting Brosa was purchased at $1.5 million, and additional logistics support for thousands of customers with undelivered orders. This purchase includes the assets of intellectual property, goodwill and stock, and excludes all leases and other liabilities. This means Brosa joins Dick Smith, Matt Blatt and Mighty Ape in the Kogan Group to expand the Kogan Group’s furniture offering. According to this morning’s media release, Brosa.com.au will eventually relaunch with expanded range and value under the new owners. The purchase was funded from Kogan’s cash reserves.
Last week, the company was placed into voluntary administration following a rough year in the wake of a pandemic sales boom that failed to maintain momentum. The administration was overseen by Richard Tucker and Michael Korda of KordaMentha. The administrators expected a strong interest in the company, and announced that around 30 investors had approached them, just days after the company was placed into voluntary administration.
“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,” said Kogan.com COO and CFO David Shafer. “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.”
KordaMentha has this morning released a statement that Kogan.com had emerged as the successful bidder. “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.”
Kogan.com intends to continue to operate www.brosa.com.au and offer delivery for customers who have already paid, where Brosa has the product in stock. In the announcement last week, the administrators claimed that this would likely be the case.
Mr Tucker said the priority for the Administrators now is to pay employees as soon as possible. He thanked the employees who had assisted the Administrators in extremely difficult circumstances. “The sale of Brosa is a fantastic outcome for the creditors of Brosa,” Mr Tucker said.
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