You may remember Fab.com from when people were posting affiliate links from them to your Facebook feed almost constantly. The company was massively successful as part of the recession-era flash-sale boom, combining discounts with well-curated products. That model led the company to have hundreds of employees and a $1 billion valuation. Then that business collapsed. Now the Fab.com brand has been sold for…well, the companies involved aren’t disclosing how much the final sale price is.
That makes a simple and easily digestible story, doesn’t it? An e-commerce company had a quick rise, raised hundreds of millions of dollars in investments, and then collapsed, eventually selling the remnants of its business in a fire sale to another company before a quiet, dignified death. That’s not really what happened here, though. While we don’t know how much the Fab.com business sold for, the original figure agreed upon last year was $15 million. The part of the site that used to sell items with cool designs survives, and thats what has been sold to PCH, a custom manufacturing company.
Many of Fab’s resources and employees went to spinoff company Hem, a European-based furniture company that aims to be like, as far as we can tell, a higher-end IKEA.
Onetime Internet Darling Fab.com Sells for Paltry Sum [Bloomberg News]
by Laura Northrup via Consumerist
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