It’s a big day for home-goods ecommerce site Fab, as Forbes reported Friday that the company has decided to pivot away from flash deals. Fab, which is valued at more than $1 billion, is also losing co-founder Bradford Shellhammer in the transition.
“I am also someone who has an explorer’s heart. And I don’t sit still. And I want to make other things in this world,” Shellhammer wrote on his personal blog. “And Fab is at a point in its history where I’ve decided to walk away from the day to day.”
Shellhammer’s departure seems like the cap on a particularly tumultuous year for the company. After receiving a $150 million in Series D funding and another $30 million in debt to become a “design store,” Fab laid off more than 100 people in Europe earlier this summer and announced plans in October to cut 20 percent of its remaining staff (roughly another 100 people) in order to “accelerate profitability.” It appears, though, that the months-long transition is complete.
“All businesses go through evolutions and different phases, and Fab is no exception. What once was a flash sales website is now the Everyday Design store,” wrote co-founder and CEO Jason Goldberg in a blog post. “What once was a startup formed around a kitchen table is now an established business. What once was an idea on a napkin is now a brand.”
Transition has been a large part of Fab’s story: it began in 2009 as LGBT-focused social network fabulis before pivoting in 2011 to flash-deal focused home decor site Fab. As that model gained traction, the company has focused particularly on developing custom partnerships with decor manufacturers like MODLOFT to bring exclusive furniture, apparel and decor to the user base. Now, all trace of the flash deals that Fab built its name on are removed — perhaps for the best, as the trend has dwindled within the last few years.
Despite the departure, Shellhammer will remain a non-executive advisor and key shareholder in the company.