SYDNEY–Tsubi Pty Ltd, the parent company of denim and streetwear brand Ksubi, has been placed in voluntary administration.
Ksubi founders George Gorrow and Dan Single said this week that they had been “struggling to achieve the margin necessary to fund the growth and development of the brand”. This is just the latest Australian fashion casualty of the global economic crisis that has already seen the demise of Sydney denim brand, 18th Amendment.
Reports of the company’s cashflow problems date back as far as 2006, six years after the brand’s launch at Australian Fashion Week. That same year, a trademark dispute with Californian footwear brand Tsubo forced the Australian brand to change its trading name to Ksubi.
In December 2009, the duo flatly denied reports that they were in discussions to sell a stake to Diesel owner Renzo Rosso. At that point, Gorrrow and Single reportedly owed creditors 8 million Australian dollars ($7.4 million).
Ksubi’s four stores in Australia and New York will remain open for the time being according to administrators Grant Thornton.
Paul Billingham, one of the administrators, said a creditors’ meeting will take place next week. He said there are several options including liquidation, disposal of the business as a going concern or a deed of company arrangement.