Earlier this month, news broke regarding a potential agreement between the furniture and decor companies Mobly and Tok&Stok, the latter being controlled by Carlyle. The proposed arrangement stipulates that Mobly's shareholder, home24, will hold an 80% stake in the new company, while the Tok&Stok owners will retain the remaining 20%. Rumors about this merger had circulated since March of this year. 

By the end of 2022, Tok&Stok reported a net loss of R$ 460.7 million. Following financial challenges that became public knowledge, the company received a capital injection of R$ 100 million from its controlling entity and refinanced a R$ 350 million debt with banks. Nonetheless, Tok&Stok had to close 17 stores. 

On the other hand, Mobly originated in the online sphere, a fully digital venture, and in recent years, it accelerated its strategy of establishing physical stores. Presently, the company operates 17 units and an additional three through the Mobly Zip franchise network. With this merger, Mobly will benefit from the extensive network of approximately 50 physical locations maintained by Tok&Stok, spreading across various Brazilian states. Conversely, Tok&Stok will gain from Mobly's digital reach. 

According to data from the industrial market monitoring by the Market Analystics platform at SiiLA, Tok&Stok occupies over 66,000 square meters at Extrema Business Park I, situated in the region of the same name in Minas Gerais. Meanwhile, Mobly is also present in an industrial asset in Extrema, Cajamar (SP), and Cabo de Santo Agostinho (PE), totaling 84,798 square meters in leased space. 

When combining their operations, the new company will stand as one of the industry behemoths in leased space, amassing over 89,000 square meters in assets of this kind. This merger will position Mobly and Tok&Stok ahead of major market players like Casas Bahia and Marabraz, particularly in terms of occupying industrial properties. 

Sources from the commercial real estate market, as consulted by the REsource editorial team, attribute Tok&Stok's financial struggles to the impacts of the Covid-19 pandemic, which mandated extended closures of physical stores.