Fab.com, the e-commerce start-up that was once valued at nearly $1 billion, is in early-stage talks to sell for between $15 million and $50 million, TechCrunch reported Friday.
The company could be acquired by electronics manufacturer PCH International about a potential half cash and half stock deal, said multiple sources with knowledge of the situation. According to TechCrunch, the sources cautioned that the talks could fall apart at anytime.
If the agreement pans out, the remaining assets of Fab will be rolled into CEO Jason Goldberg's new furniture and home decor venture, Hem.
Private equity firms, including First Round Capital, Andreessen Horowitz and Menlo Ventures, and have invested nearly $340 million into the company, according to CrunchBase.
Founded in 2011, the company laid off more than a fifth of its staff last year and began to automate most of its business an attempt to "accelerate Fab's path to profitability," Reuters reported.
Fab.com's muliti-platform unique visitors declined to 77 in October from a recent peak of 3,584 in March 2013, according to comScore data.
"It's likely that a good amount of traffic was being driven by search and if they've had to pull back on search advertising as they ran into trouble that could cause a decline of this nature," said Andrew Lipsman VP, Marketing and Insights at comScore.
Click here to read the full report from TechCrunch.