US e-commerce retailer Fab.com has agreed to invest in French-based myFab just months after axing 150 of its European workforce.
Fab.com is understood to have 'acquired assets' from myFab for around €3.1 million (£2.7 million) with possible additional payouts overtime, according to Techcrunch.com. MyFab was co-founded by Ning Li who left in 2009 and started Made.com in the UK in January 2010.
MyFab was previously 51 per cent owned by WebMediaGroup and 49 per cent by Alven Capital and BV Capital. It is not yet clear how the holdings have changed following the buy-in.
Fab.com, which is expanding into Europe alongside its fierce rival JustFab, told Techcrunch it has 'not bought the whole company'. Similar to Li's Made.com, myFab is based on the premise that shoppers buy straight from factories in China - cutting out suppliers and bricks and mortar retailers. The myFab site is currently down promising to be 'back soon'.
Fab.com said in July that it would shed 150 workers and its chief European officer in Germany Maria Molland apparently resigned the previous month. However, Fab.com also raised $150 million in June, at which point it was listed as worth £1 billion. That took its total funds raised to $336 million.
No comments:
Post a Comment