Kogan.com will rescue the failed furniture retailer Brosa after agreeing to buy it from administrators

Failed luxury furniture retailer Brosa will have a second chance at life after Kogan.com agreed to buy the business for a surprising price.

Kogan.com co-founder and CEO Ruslan Kogan is fleshing out his online marketplace’s exposure to the furniture sector after agreeing to buy failed retailer Brosa. pic : Hollie Adams

Online marketplace Kogan.com has expanded its reach into the furniture sector after paying $1.5m for the collapsed online luxury furniture retailer Brosa with plans to relaunch the brand.

Kogan.com announced on Thursday it purchased the Brosa business, excluding any leases and liabilities, out of administration and to add to its other furniture business Matt Blatt which it bought in 2020 after that business also trembled and was sold to it in a fire sale.

Brosa, which specialises in luxury furniture styles but at affordable prices, was forced into voluntary administration last week after strong growth experienced through the early years of Covid-19 was unable to be repeated as lockdowns ended.

Although Kogan.com, co-founded by Ruslan Kogan, is known for its Kogan-branded online platform it has shown an interest in picking up other businesses, especially distressed businesses, that it can add to its offering as well as providing an opportunity to scoop up more customers.

In 2016 Kogan.com bought the online business of failed consumer electronics retailer Dick Smith to give it access to Dick Smith’s database of hundreds of thousands of customers. In 2020 Kogan.com agreed to pay $122.4m for Mighty Ape, one of New Zealand’s largest online retailers.

Under the deal to buy the intellectual property and key assets of Brosa, Kogan.com has paid $1.5m to be funded from the company’s cash reserves.

Founded in 2014, Brosa revenue for 2022 was $75m, which was largely generated online, and the Brosa customer base consists of almost 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 $60m, Kogan.com said on Thursday.

“The acquisition will significantly expand Kogan.com’s share of the online furniture market, and ensure Brosa and Kogan Group customers can access great deals on beautiful furniture and homewares.

“Kogan.com will continue to operate a relaunched Brosa.com.au and will offer to resolve unfulfilled customer orders, where Brosa has the product in stock. These customers will be contacted by Kogan.com about arrangements in the coming weeks.”

Kogan.com chief operating officer and chief financial officer David Shafer said 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.

“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.”