After hearing news of the popular street wear store might be filing for Chapter 11 bankruptcy, it is no surprise in hearing about potential purchasers wanting to buy Karmaloop. The online retailer’s Founder and CEO Greg Selkoe is talking to investors to pay off part of the company’s debt and pay $10 million in working capital.
During an interview, which premiered on Monday Damon Dash talks about his business model, his involvement in hip hop, and revealed that he and Kanye West are looking to buy Karmaloop.
”I got my own Netflix, but I started with my content and it also sells music and it also sells clothes.” One would presume he’s just recapitulating his history with the Roc, but Dame continues, “You know, you don’t have to put this out until Monday, but me and Kanye are gonna buy Karmaloop, so you’ll probably feel that by the time this is out.”
Greg Selkoe says that Kanye and Dash aren’t the only potential suitors, “We’ve heard from them and others too. There’s a lot of interest in Karmaloop and we consider that a good thing.” At this point, Karmaloop may be forced into a Chapter 11 filing if it can’t make a deal with investors to restructure debt and add capital.
Karmaloop is already making an improvement when it comes to the company’s future, the brand has reportedly received an investment of $3 million from Comvest Partners and CapX Partners.
“Let me preface what I’m saying with Karmaloop is open for business, and we’re going forward,” Selkoe said. “The core business continues to still do well, this has nothing to do with the existing brand.”
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