In March 2015 Bradford Shellhammer, the co-founder of Fab.com, launched Bezar. An online design store with curated products from designers and hosted digital "pop-up" shops, with short run flash sales.
In many ways a business model similar to Fab, but instead of focusing on growth, Bezar was intended to be a much smaller enterprise. Simply put, Bezar was to be what Fab, once valued at almost a billion dollars, never became.
Now, less than a year later Bezar is being acquired for an undisclosed amount by the online retailer AhaLife, Bloomberg reports. The Bezar brand and most of its employees will be folded into AhaLife that offers luxury design products from more than 3,000 handpicked designers and artisans. Shellhammer will also join as an adviser.
Didn't Learn From Fab Mistakes
Bezar raised $2.25 million before it launched last spring but recently the online retailer has been running low on money. Bradford Shellhammer considered taking on more funding or teaming with a brand, but finally decided to sell to AhaLife.
Flash sales have proven hard to monetize and beside from Fab and Bezar another flash sales site named Gilt just sold for $250 million.
– Running out of cash is never a good thing because it suggests you were over optimistic about sales projections or of your ability to raise capital. For all the hype of talking about learning from the mistakes of Fab, sounds like he didn't really, says Sucharita Mulpuru-Kodali, an analyst at Forrester Research.