Here’s the latest move from troubled e-commerce startup Fab.
It’s buying One Nordic Furniture Company, a furniture company based in Finland and Sweden. The deal “closed just minutes ago,” according to a Fab’s spokesperson Amy Juaristi.
Fab has been a fascinating company to watch. It started as a gay social network, then pivoted into a flash sales site, then pivoted again into a site that sells designer goods.
Just a year ago, it raised $US150 million in funding at a $US1 billion pre-money valuation. That brought its total funding above $US300 million.
By the end of 2013, however, it was clear things were not working. In October and November it laid people off. Those lay offs weren’t enough. It cut even more people last month.
At the start of the month there were reports that Fab was running out of money, and would be dead by the end of the year. Fab denied those reports.
It said it was only burning $US1.6 million per month, and it had enough cash in the bank to survive for years if just did what it was doing. However, it now owns a furniture company, so who knows what will happen.
This isn’t the first furniture company Fab has acquired. It previously bought a German furniture site.
Here’s the press release:
- Fab has acquired the One Nordic Furniture Company of Helsinki, Finland and Stockholm, Sweden.
- Fab, the U.S.-based design e-retailer, delivers a global team of design, retail and marketing experts; a proprietary ecommerce platform; and the backing of some of the top investors in the world
- Long a darling of the Nordic design community, One Nordic brings expertise in innovative furniture design and manufacturing and a track record in online furniture sales
- The acquisition is a combination of cash and stock, valued in the tens of millions of dollars
- The One Nordic team will own 5% of the combined company with the finalization of the transaction
We are pleased to announce a seminal partnership for Fab: the acquisition of One Nordic Furniture Company of Helsinki, Finland and Stockholm, Sweden. Long a darling of the Nordic design community, One Nordic brings expertise in innovative furniture design and manufacturing and a track record in online furniture sales to Fab’s global team of design, retail and marketing experts.
The acquisition flows from a long-term strategic plan we laid out last fall. We have seen great success in our recent private label initiatives and customised furniture launches; our acquisition of One Nordic is the next step in pursuing this plan that is proving itself in market.
Fab CEO Jason Goldberg:
“Design is at the center of Fab — and has been since Day 1. Teaming up with One Nordic adds incredible talent to our design bench and brings us ever-closer to our suppliers and manufacturers. We are excited about the design collaboration to come.”
One Nordic CEO Joel Roos:
“We have dedicated ourselves to designing high quality furniture and accessories that deliver on a Nordic sensibility, updated for the 21st Century. Now, our partnership with Fab offers a new platform through which to share our work with people around the world.”
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