Kogan has bought collapsed online furniture retailer Brosa, throwing a lifeline to customers who had undelivered orders in its pipeline.
Kogan will pay $1.5 million plus offer logistics support for the thousands of Brosa customers with undelivered orders, the company said on Thursday.
Brosa had $75m in revenue in 2021/22, nearly 500,000 subscribers and was recently valued at over $60m, Kogan said.
It's one of Australia's largest online luxury furniture retailers, with physical showrooms in Sydney and Melbourne.
"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 chief operating and financial officer David Shafer.
Founded in 2014 and backed by venture capitalists, Brosa offered design-led furniture and homewares, but - like Kogan - invested too rapidly in inventory during a period of phenomenal sales growth in pandemic.
When the lockdowns were lifted and online sales declined, Brosa faced short-term cashflow pressure and the company filed for administration on December. 14.
More than 30 parties expressed interest in the two days following the appointment of KordaMentha, with Kogan emerging as the high bidder.
"Kogan.com is a white knight for the business and particular customers who are awaiting delivery of orders where the stock was held by Brosa," said administrator Richard Tucker, of KordaMentha.
The administrators had been unable to fulfil these orders "due to challenges in the logistics network", Mr Tucker said.
The priority for the administrators is paying employees "as soon as possible," Mr Tucker said, thanking those who had assisted administrators during extremely difficult circumstances.
Kogan plans to relaunch Brosa.com.au "very shortly," Mr Shafer said.
Brosa will join electronics brand Dick Smith, Kiwi online shopping platform Mighty Ape and furniture retailer Matt Blatt as part of the Kogan Group.
