Karmaloop was once, and to many still is, the destination for streetwear fans to cop gear they may not have been accessible to if they didn’t live in say New York City or Los Angeles. However, the Boston-based retailer may have to file for bankruptcy.
Reports the New York Post:
The Boston-based streetwear site — a dot-com darling just a few years ago with ambitious plans for growth — is scrambling to avoid a Chapter 11 filing, sources told The Post.
Chief executive Greg Selkoe is in talks with investors including a New York-based private-equity firm to pay off a portion of the company’s secured debt while adding $10 million in working capital to the business, said one source.
Still, those talks could fall apart, insiders said, leaving Karmaloop’s investors liable for as much as $100 million in writedowns on debt and equity.
Those investors include the prominent New York VC fund Insight Venture Partners, which has poured about $50 million in unsecured loans and equity into Karmaloop, insiders said. Reps for Insight and Karmaloop declined to comment.
Just a few years ago Karmaloop was flush, and last year they collaborated with Dipset.
But just like any business, it’s adapt or die out in these e-streets.