What a sad, but in some cases expected downfall for the once dominant street wear warehouse. Karmaloop, had been a longtime one stop shop for your favorite brands such as 10 Deep, Crooks And Castles, Stussy and up and coming brands as well. In the last year, the site has come under fire in an array of categories. There were multiple complaints and let’s keep it real, slanderous banter online from customers over late or non-reception of clothing. Along with the late shipping, the actual brands they were selling under consignment deliveries weren’t getting their back pay.
The NY Post reported:
“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.”
“I’m going to be out in LA talking to investors. But a lot of what I’m doing is going to be running the business. It’s not always the easiest way to deal with things. But I’ve been dealing so much with managing this debt and juggling payables and everything,” Selkoe tells Four Pins. The company will take part in a 363 sale process and restructuring, which Selkoe deemed “bankruptcy light” and is working towards reorganizing its assets and making the business run better in general.
As for those delayed orders, Selkoe says they’ll be fulfilled: “I feel terrible that there were held orders and delays. I got guarantees from the bank that 100% of the customers who had order issues are going to be taken care of. We’re going to make it up to those people who had issues. We’ve been doing this for 15 years, I hope people won’t judge us by one hiccup.”
Meanwhile, once the company finishes with its plans to restructure, Selkoe aims to bring it closer to its roots. “We’ve been so promotional [with coupons and discount codes] because when you’re cash poor and need cash quickly, you have to liquidate stuff,” he says. “So we’re going to push the brand back towards its roots of being more premium, doing less discounting on the main site and to really differentiate between PLNDR and Karmaloop. But the fact is we’re not going anywhere. We’re going to honor our commitments and the company is going to be better and stronger.” (Via Four Pins)
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