The online design shop Fab.com plans to change its name, individuals close to the company have told WebMagazin.
Following the purchase of One Nordic, a bespoke Scandinavian furniture company, Fab has reportedly decided to create a new brand Hem, the Swedish for ‚home‘.
The acquisition of the Finnish company comes as a surprise following the recent downsizing of its New York office. In May, 90 employees were sacked from the company’s North American headquarters.
Responding to reports that the company is closing its New York office, Fab’s CEO, Jason Goldberg, tweeted that the rumours are „bullshit hate.“
„We’ve got years of money & a sound plan. Proof in time.“
The exact cost of the purchase has not been disclosed, although Tech Crunch claims it to be in the „tens of millions of dollars“.
Following last month’s restructuring, Fab reportedly has 40 months of „runway“ (or remaining funds), according to Re/code sources.
Fab’s PR spokesperson Amy Juaristi told WebMagazin that the Fab brand will continue to exist alongside the new brand:
Fab will continue on. We are creating a spin-off business for our private label furniture, bringing together the best of One Nordic and Fab private label.
One Nordic’s founder commented that the company aims to sell products globally via Fab:
We have dedicated ourselves to designing high quality furniture and accessories that deliver on a Nordic sensibility, updated for the 21st Century. Now, our partnership with Fab offers a new platform through which to share our work with people around the world.
From Fabulis to Fab to Hem
Since its started out as the gay social networking platform Fabulis, Goldberg’s company has seen multiple strategic changes, from flash sale website to custom furniture shop. According to internal reports, Fab’s CEO is „gradually“ moving to Berlin, where the majority of remaining staff are located.
Juaristi previously told WebMagazin that Fab plans to grow its Berlin team by 25% in the coming months and relocate to another office.
Fab claims the recent purchase of One Nordic reflects their aim to expand into bespoke interior design:
The acquisition flows from a long-term strategic plan we laid out last fall and behind which we have been aligning the company. We have seen great success in our recent private label initiatives and customized furniture launches; our acquisition of One Nordic is the next step in pursuing this plan that is proving itself in market.
Since its evaluation at $1 billion last year, the company has seen four rounds of downsizing. The resulting media focus on Fab’s apparent downward spiral from 700 to 200 employees are likely a factor in the company’s decision to rebrand.