Fab.com Brand Sold For Maybe $15 Million-ish, Spinoff Still Sells Furniture

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