In the end, Kanye West didn’t swoop in to buy online retailer Karmaloop Inc. and founder Greg Selkoe is on his way out as the bankrupt company’s chief executive.
A federal bankruptcy court judge Thursday approved the $13 million sale of the Boston-based online streetwear retailer to a group of senior lenders. The sale marks the end of Selkoe’s leadership at Karmaloop, a company he founded in the basement of his parents’ Jamaica Plain home in 1999.
As recently as this spring, Selkoe said he would keep his job as chief executive of the company and hinted that West was in talks to buy Karmaloop.
But the new owners, Comvest Capital of West Palm Beach, Fla., and Chicago-based CapX Partners, were the only group to submit an offer to buy Karmaloop in a bankruptcy auction process. The firms plan to replace Selkoe and install new management at Karmaloop in the coming weeks, according to Robert O’Sullivan, a partner at Comvest Capital.
O’Sullivan said Selkoe will remain involved with the company in an advisory role. Selkoe said he was “excited about the new capital coming into the business as well as my new role.”
The firms will continue to operate Karmaloop in the US and Europe, as well as the company’s Kazbah marketplace and PLNDR website, O’Sullivan said. The business will remain headquartered in Boston.
“This is a new chapter in the Karmaloop story,” O’Sullivan said. “We’ll be a debt-free business, have a new owner and the ability to put more capital into the business. We’re excited about the brand and we’re excited about owning the company.”
Read the full story on Beta Boston here: http://www.betaboston.com/news/2015/05/21/karmaloop-sale-approved-ceo-selkoe-to-be-replaced/
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