Fab buys Finnish furniture store One Nordic
Design-focused online retailer Fab has acquired One Nordic Furniture Company, which is – if you may have guessed – a furniture company that’s active in the Nordic countries. Hopefully the acquisition can help Fab, as the ecommerce company has had some trouble finding its definite footing.
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Business Insider writes that Fab bought One Nordic Furniture Company and that it isn’t the first furniture company Fab has acquired, as it previously bought German furniture site Massivkonzept. Earlier this month, several sources told the website Re/code that Fab’s board of directors has approved the purchase of an European furniture company and the likely creation of a new shopping site. “The latest developments are part of an attempt to resuscitate a flailing global e-commerce business that was once a darling of the technology investment community”, Re/code wrote.
Struggling with business model
Fab has indeed been struggling with its business model and this even lead to some speculation the company would be close to shutting up shop completely this year. Last month, Fab announced another round of layoffs, cutting the staff by almost a third so there’s now about 200 people working for the company. Fab’s founder and CEO Jason Goldberg wrote in a tweet: “Bullshit hateful rumors of Fab shutting down are just that. Bullshit hate. We’ve got years of money and a sound plan. Proof in time.”
It started as a gay social network in 2010, but Fab turned into a website of daily design inspirations and sales one year later. And now it’s shifting from reselling other company’s products towards selling its own products, something that’s happening now in Europe.
With the acquisition of One Nordic Fab can hopefully continue to succeed in the furniture business. It’s unknown for what price Fab acquired the Finland-based furniture company, but it’s at least “a combination of cash and stock, valued in the tens of millions of dollars”. One Nordic, which is sometimes called the luxury Ikea, becomes a 5% shareholder in Fab
Acquisition is next step in proving itself in market
“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 customized furniture launches; our acquisition of One Nordic is the next step in pursuing this plan that is proving itself in market”, Fab’s CEO Jason Goldberg says about the deal.
— Jason Goldberg (@betashop) June 18, 2014