Brosa set to be wound up, with $20 million deficit

Administrators are recommending creditors wind up upmarket online furniture retailer, Brosa.

The business collapsed into voluntary administration last month with assets of $4.3 million and liabilities of $24.2 million, including $10 million in unfulfilled orders.

The company made “substantial losses” during the past three years of operations, largely due to Covid.

E-commerce marketplace Kogan.com bought the business for $1.5 million relaunching the brand’s online offering and resolving unfulfilled orders where stock was in the warehouse.

“The offer of $1.5 million from Kogan.com was materially better for stakeholders overall than the next best offer, particularly given it included a solution for about 2500 customers who had paid for goods that were identified in the Brosa warehouses,” said voluntary administrator Richard Tucker.

Despite employees receiving full entitlements, some customers may not receive their orders as there is “limited cash to trade” with suppliers and couriers being owed material amounts as well.

“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,” said Tucker.

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