No last minute bidders emerged for Karmaloop and a judge ruled Thursday that the new owner is a group of Karmaloop’s senior lenders.
The lenders, lead by Comvest Capital, made a $13 million credit bid for Karmaloop, meaning it would forgive some of Karmaloop’s debt in lieu of cash.
CEO Greg Selkoe, who had claimed Kanye West was interested in buying the company, is being replaced as CEO in favor of more professional management, a Comvest representative told the Boston Globe.
Karmaloop will continue to operate and is now debt-free with new owners who want to invest in the business, the representative said.
Before filing for bankruptcy, Karmaloop racked up $100 million in debt and owed vendors nearly $20 million. Meanwhile revenues had begun to slump over the past few years.
The company repeatedly tried to attract investors and to sell the company before it filed for bankruptcy but was not successful.
See our other Karmaloop stories
Karmaloop insiders’ prebankruptcy payday
How high-flying Karmaloop became bankrupt
The low opening bid for bankrupt Karmaloop
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