Fab

On the Heels of Cutting a Third of Its Staff, Fab Buys a Finnish Furniture Company

Guest Writer
2 min read
Opinions expressed by Entrepreneur contributors are their own.

Here’s the latest news on the Fab front: The struggling ecommerce startup -- which, in less than a year, went from a receiving a $1 billion valuation to fending off reports that it was transitioning “from existence to nonexistence” – just bought One Nordic Furniture. (This is Fab's second furniture acquisition. It previously snapped up German-based company Massivkonzept.)

Judging from its website, the Helsinki, Finland-based furniture company is something of an upscale Ikea.

While the exact terms of the deal were not released, the acquisition was “valued in the tens of millions,” according to a press release. In addition, Nordic One will acquire a 5 percent stake in Fab.

Related: Fab's CEO Refutes 'Hateful Rumors' That His Company Is Shutting Down

The acquisition comes after quite a tumultuous year for the New York City-based company. Last July, the ecommerce site raised an additional $150 million (bringing total funding to approximately $336 million) for a valuation of around $1 billion. Since then, Fab has seen countless layoffs (last month it let a third of its remaining global staff go), had its co-founder Bradford Shellhammeralong with countless executives, leave and been under an enormous amount of scrutiny. Just two weeks ago, Fab’s CEO and co-founder Jason Goldberg took to Twitter to again deny rumors that his company was essentially dead in the water.

In a statement announcing the acquisition, Goldberg reiterated the sentiment expressed in the above tweet, albeit in more formal language. “The acquisition flows from a long-term strategic plan we laid out last fall,” he said. “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.”

Could this be the pivot to help the struggling ecommerce site turn itself around? Only time will tell.

Related: Why Fab Is Bleeding

More from Entrepreneur

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Fab's CEO Refutes 'Hateful Rumors' That His Company Is Shutting Down