Administrators have recommended winding up Brosa after it was sold to Kogan.com for $1.5 million in December 2022 when it fell into voluntary administration.
The company entered administration with $4.3 million in assets but a whopping $24.2 million in liabilities, including $10 million worth of unfulfilled orders.
It attributed the COVID-19 pandemic to causing substantial losses for the company over the past 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 firm KordaMentha said.
Despite there being $10 million worth of unfulfilled orders by Brosa, which impacts about 2500 customers, administrator Richard Tucker claims Kogan.com is working to send 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…