Kogan rescues furniture operator Brosa from collapse

E-commerce platform Kogan.com will expand its focus on furniture after rescuing collapsed homewares operator Brosa from administration for $1.5 million.

ASX-listed Kogan confirmed to the stock exchange on Thursday morning that it would acquire the Brosa business, not including leases or liabilities, and intended to relaunch the brand’s online offering.

Kogan chief executive Ruslan Kogan was upbeat about the long-term growth opportunities for online furniture sales in Australia.

“The biggest prize in the furniture industry will be capturing market share as more and more of the purchases move from bricks and mortar online,” he told this masthead.

“In this market, Brosa certainly has a huge brand in Australia,” he said.

“We can do it more efficiently and save the brand.”

Brosa, which had attracted high-profile investors including AirTree since its launch in 2014, collapsed into voluntary administration earlier this month, after facing a challenging trading environment after COVID-19 restrictions were lifted and shoppers went back in store to purchase furniture.

Brosa generated $75 million in revenues in 2022 and has an online community of 500,000 subscribers.

Kogan will buy the company’s intellectual property, goodwill and stock at a purchase price of $1.5 million, but the deal does not include the group’s leases and other liabilities. It will relaunch the Brosa website and resolve any unfulfilled customer orders.