A Tech Company Once Valued At $1 Billion Is About To Sell For $15 Million

Ailing e-commerce site Fab is reportedly in talks to be acquired by PCH International for $US15 million.

TechCrunch reports that Fab’s contractual agreements are in the early stages with PCH, an Irish company that sells product development supply chain management services.

The $US15 million price tag is a low selling price for Fab, which was previously valued at over a billion dollars in July 2013 when it raised $US150 million in funding. Fab declined to comment on this story.

Speaking on stage at TechCrunch Disrupt in October, Fab founder Jason Goldberg said that “e-commerce is a b**ch,” before explaining that Fab was burning through $US14 million every month.

Fab has tried to turn itself around in recent years. It launched a new business, Hem, which lets people design and order furniture online. It also underwent several rounds of layoffs, reducing the number of staff from 750 to 185 employees.

Goldberg seemed to suggest last month that Fab was not up for sale, instead hinting at the company’s future. “We have years and years of cash left,” he said, “I didn’t start it to sell it, I started it to build a great e-commerce business.”

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