Kogan.com buys Matt Blatt for $4.4 million
Matt Blatt is trading again under its new owner Kogan.com, which has acquired the intellectual property and goodwill of the replica furniture business for $4.4 million.
The acquisition will serve as a “springboard” for the online retailer to expand into the furniture and homewares market, according to a statement Kogan.com released to the ASX on Friday.
“We are pleased to bring the iconic Matt Blatt brand into new ownership, and relaunch the business as an online-only offering,” Ruslan Kogan, CEO of Kogan.com, said in the statement.
Kogan said he plans to combine his company’s technology, systems and infrastructure with Matt Blatt’s decades of industry experience to deliver a market-leading offer.
“We look forward to serving and delighting furniture and design lovers all over Australia,” he said.
Matt Blatt is well known for its replica mid-century modern furniture and homewares, which it sold through 12 bricks-and-mortar showrooms as well as online.
But in late March, the company closed its stores and website and stood down staff due to the impact of tightened social distancing restrictions on sales, and Matt Blatt founder Adam Drexler suggested the closure could become permanent.
“We can’t see our way clear to just hibernate and open up again,” Drexler told Inside Retail in early April.
At the time, Drexler said he was fielding acquisition offers, but he also acknowledged the possibility of shutting down permanently, rather than try to eke out a profit in a depressed economy after restrictions lift.
“I personally believe that things won’t return to normal. There will be a big recession for many years, and that’s when a lot of companies will struggle,” Drexler said.
According to documents lodged with the corporate regulator, Matt Blatt’s revenue in FY19 was $46.5 million, with 20-25 per cent of this occurring online.