Fab, the hugely popular e-commerce website is up for sale for a not so eye watering $15 million. The reason why I say it’s not a particularly impressive selling price because this company was valued at $1 billion in the not so distant past; 2013 to be precise.
PCH International are said to be in talks with Fab and are ready with a $15 million offer. It is reported that Fab’s contractual agreements are in the early stages with PCH, an Irish company that sells product development supply chain management services. The $15 million price tag is a low selling price for Fab, which was previously valued at over a billion dollars in July 2013 when it raised $150 million in funding. Fab representatives declined to comment on this story. Earlier in October, Fab founder Jason Goldberg explained that Fab was burning through $14 million every month.
Fab has made efforts to turn itself around in recent years. It launched a new business, Hem, which lets people design and order furniture online. It also underwent several rounds of layoffs, reducing the number of staff from 750 to 185 employees.
Goldberg seemed to suggest last month that Fab was not up for sale, instead hinting at the company’s future. “We have years and years of cash left,” he said, “I didn’t start it to sell it, I started it to build a great e-commerce business.”. That seems like a different story right now.