Administrators have advisable winding up Brosa after it was bought to Kogan.com for $1.5 million in December 2022 when it fell into voluntary administration.
The firm entered administration with $4.3 million in property however a whopping $24.2 million in liabilities, together with $10 million value of unfulfilled orders.
It attributed the COVID-19 pandemic to inflicting substantial losses for the corporate over the previous three years.
“Given the material cash flow shortfall, it was not possible to keep the business trading or to make deliveries and so an urgent process for the sale of the assets was held before Christmas,” Brosa’s advisory agency KordaMentha mentioned.
Despite there being $10 million value of unfulfilled orders by Brosa, which impacts about 2500 clients, administrator Richard Tucker claims Kogan.com is working to ship them out.
“For these customers, Kogan.com has assumed responsibility for delivery of their goods (however can charge a reasonable fee to do so) or provision of a store credit available to be used on any item sold on Kogan.com which will be selling Brosa products in addition to Brosa.com.au,” Tucker mentioned.
“Kogan is currently working through this process.”
But not all clients will get their a refund or obtain their orders.
Tucker mentioned if clients’ orders cannot be situated within the warehouses they will not obtain their a refund nor the furnishings itself.
“With limited cash to trade the business and material amounts owed to suppliers and couriers, there will be some customers who will not receive their orders,” Tucker mentioned.
“We understand the extreme frustration for those impacted, however the administrators have no means to acquire these goods or deliver them as there are insufficient funds to do so.”
Kogan plans to relaunch the business in order that clients can proceed to buy furnishings.
Employees at present with Brosa will obtain their full entitlements as Kogan takes over the corporate.
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