Kanye West and Dame Dash have reportedly shown interest in purchasing Karmaloop. Karmaloop’s founder and CEO Greg Selkoe officially announced the online retailer filed for Section 11 protection to restructure and streamline the business.
Dame and Yeezy supposedly smelled blood, and over the weekend, Dash revealed the duo’s purchase this week in the above video interview with Hip Hop Motivation. He quickly followed by stating he would “put the Complex Network out of business for f***ing with me,” and that “It’s a war.”
Joie Manda is somewhere snickering at announcing a big deal before it’s signed. Only time will tell how it plays out, though.
Mr. Kardashian and Damon should have some interesting discussions with Comvest and CapX. The firms are ponying up $3M which enable Karmaloop to clean house. They can preside over their new investment with care which could ruffle the feathers of the fiercely independent Dash. That said, with over 4M unique visitors a month, the clothing giant should be able to shred the experimental businesses and quickly pick up steam. US e-retail’s expected to jump another 33% this year from $307B to $398B. Now that’s big pimping, Damon.
Selkoe noted the core reasons behind the filings stemmed from the brand “carrying too much debt from past ancillary business startups that were discontinued.” He also said they’re “excited to be able to restructure Karmaloop to focus on and enhance our core business strategy and continue to execute on our plans for profitability.” In other words, he paid too much attention to his prospective buyer’s social feeds (#DameDashTweets).
The site also didn’t do its due diligence on video content which “proved not to be economically feasible and the debt that remained as a vestige of these past efforts was hindering working capital for the core business.” Basically – sell those threads and let Viacom worry about the TV shows.
Updates from Damon may arrive soon, including a rant “Powered by Chipz Cookies” (shouts to Boogie Dash).