Karmaloop is in some major financial trouble, and it's caught the attention of Dame Dash and Kanye West.
Despite years of massive success in the online distribution of streetwear, Boston-based website Karmaloop is rumored to be headed toward bankruptcy, and it could be happening as early as this week.
According to the NY Post, the company is doing its best to prevent a Chapter 11 filing, with Chief Executive Greg Selkoe reportedly approaching investors to work out the brand's debt. However, if the plans fail to come to fruition, Karmaloop will find themselves responsible for "$100 million in writedowns on debt and equity".
The company's debt caused a $20 million dip in revenue from 2013 to 2014, and the outcry from customers has been heard through social media, with failed deliveries being reported daily on Twitter, Facebook, and Instagram.
Selkoe has addressed the complaints with promises to make it up to those left empty-handed by Karmaloop's impending bankruptcy, but his options will be limited if the aforementioned investment discussions don't pull through.
In a new interview, Dame Dash mentions off-hand that he and Kanye West have plans to purchase Karmaloop, and that the company will be acquired very soon. While no official announcements have been made, the brand tweeted out a link to the interview earlier today, captioning it "Kanyeloop?". While we're hesitant to make any conclusions based on Dame's comment, we'll be watching the story.
Until that's confirmed, we wouldn't recommend making any purchases from the site.
View Selkoe's tweets and the interview below.
Believe me it hurts me personally deeply to let cats down @karmaloop is my life but we will make it up to people & the story will be told— greg (@Selkoe) March 13, 2015
Loyalty is the backbone- if people do me solid even 5 years later I never forget- there are few out there who live by that code— greg (@Selkoe) March 15, 2015
Kanyeloop?...... http://t.co/UBIOVRFnmV— Karmaloop (@Karmaloop) March 23, 2015
(Dame's comment comes at 6:16)