Listed online retailer Kogan has bought Brosa, the collapsed online furniture chain for $1.5 million, just a week after it entered voluntary administration.
Michael Korda and Richard Tucker of administrators KordaMentha said Kogan was the successful bidder after more than 30 prospective buyers expressed an interest in the stricken chain.
Kogan said Brosa would be relaunched with an expanded range and value and maintain its brand and website. It will join Dick Smith, Matt Blatt and New Zealand’s Mighty Ape in the Kogan stable.
Kogan’s purchase includes logistics support for “thousands of customers” with undelivered orders, said Kogan in a statement. It includes IP, goodwill and stock, but excludes leases and other liabilities.
Brosa co-founder and CEO Ivan Lim put the company into voluntary administration a week ago, citing a decline in trade since Covid-19 restrictions enabled consumers to shop at physical stores again.
Describing the sale as “a fantastic outcome from creditors”, Tucker said he understood Kogan intends to continue to operate the online store and offer delivery to customers who have already paid Brosa for goods, provided the items are in stock.
“Kogan 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 is providing a great outcome for customers to get their product where possible and subject to commercial arrangements.”
The administrators will now focus on paying employees, reconciling stock and finalising arrangements to complete the sale.
Brosa achieved sales revenue of $75 million in the last financial year and has 500,000 subscribers. “The company was backed by venture capital investors and had invested tens of millions of dollars in marketing and brand-building, and was recently valued at over $60 million,” according to Kogan’s statement.
“The acquisition of Bros 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 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.”
