Australian e-commerce pioneer Ruslan Kogan claims his business attempted to buy long-time competitor Catch from Wesfarmers, calling news of its closure a “sad” end for the business.
Wesfarmers on Tuesday announced it will “wind down” the Catch business, rolling its fulfilment centres into the Kmart Group while dispersing its digital capabilities into its other retail divisions.
Around 190 roles will be made redundant, with a further 100 moving into the Kmart Group business.
Taking to LinkedIn, Kogan said the news was “bittersweet”.
“On one hand, we both launched in 2006 and they have been our closest competitor with the biggest overlap for nearly two decades,” he said.
“On the other, it’s sad to see the end of an iconic and loved Australian brand that helped pioneer Aussie eCommerce.”
Kogan reached out to Wesfarmers “multiple times to try and acquire and rescue Catch,” Kogan claimed.
“We know how to make an eCommerce business like that thrive in a sustainable way,” he continued.
“It’s a shame they chose to shut it down.”
Discussing the reasons behind the decision to wind down Catch, Wesfarmers CEO Rob Scott said it is in the “best interests of shareholders, as it allows us to eliminate losses”.
Those operating losses, before tax, are projected to hit between $38 million and $40 million for the six months to 31 December 2024.
Responding to a comment on his LinkedIn post, positing that Wesfarmers would be open to a deal rather than shuttering Catch, Kogan said: “You’d think so.”
SmartCompany has contacted Wesfarmers for comment.
It is not the first time Kogan and Catch, founded by entrepreneurs Gabby and Hezi Leibovich, have crossed paths.
In 2018, Catch Group initiated legal proceedings against the Kogan business for its use of the term ‘catch’ in mobile phone plans.
Catch Group settled the lawsuit in 2019, the same year Wesfarmers paid $230 million for the business.
The businesses were often presented as clear rivals in the media, each vying for to be Australia’s main competitor to platforms like Amazon and eBay.
Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
