For a few days, reports have been swirling that streetwear e-tailer Karmaloop may be filing for bankruptcy. As of Monday (March 23), those rumors were confirmed as the company filed for a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code, making it yet another casualty in a growing trend of youth retailers filing for bankruptcy. The good news is KL was able to turn it around pretty quickly and has reportedly received an investment of $3 million from Comvest Partners and CapX Partners to support a company restructure. Also, there might be another major saving grace in sight: Damon Dash, co-founder of Roc-A-Fella Records and Rocawear, and Kanye West might be looking to buy the brand.
In an interview with Hip Hop Motivation, released on Monday (March 23) but conducted before, Dame talks about his evolving business model—"I got my own Netflix, but I started with my own 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."
MTV News contacted Karmaloop for comment, and while CEO Greg Selkoe clearly has a lot on his plate today, he sent along the following comment: "A lot of people have expressed interest in partnering with Karmaloop. I have tons of respect for Damon and Kanye and for what they’ve done professionally, and we’re keeping lines of communication open with a number of interested parties."
Stay with us as more details become available.