Still Waiting on a Brosa Furniture Order? You Might Be Out of Luck

After going into voluntary administration late last year, Melbourne-based online furniture and homewares retailer Brosa has been going through some changes. And not all of them are good news for customers still waiting on their couches and lamps to turn up.

Brosa tripled in size during lockdowns as shoppers went online for direct-to-customer deliveries, but battled a cash crunch when restrictions lifted. On December 14, 2022, the company announced it had appointed Richard Tucker and Michael Korda of Kordamentha Restructuring as administrators.

One week later, the Brosa business was snapped up by – Australia’s largest online shopping portfolio – joining names such as Dick Smith, Matt Blatt and Mighty Ape, plus Kogan-branded services including retail sales, mobile phones and insurance.

The Kogan purchase included all “intellectual property, goodwill and stock, but exclude[ed] all leases and other liabilities”, according to a statement released to the ASX at the time.

The deal provides some good news for the estimated 2500 customers who’ve already paid for items sitting in Brosa warehouses, Tucker says.

“For these customers, 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, which will be selling Brosa products in addition to,” he says in a media release. “Kogan is currently working through this process.”

As for customers whose items can’t be identified in the warehouses? It’s not looking good.

Administrators this week recommended that the original Brosa company be wound up, with no provision for these outstanding sales.

“Whilst employees should receive their full entitlements, unfortunately there is no return for unsecured creditors including customers whose orders have not been located in the warehouses,” Tucker says.

“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.

“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.”

According to ASIC rules, voting on the liquidation must take place soon at a meeting to decide the company’s future.

Meanwhile, the Kogan-operated Brosa website is again taking orders for furniture and homewares.

Leave a Comment