KANYE AND DAMON, GET IN LINE: Kanye West and Damon Dash are going to have to follow procedure if they want to buy bankrupt etailer Karmaloop, as they say they do. Senior lender Comvest Capital in the site’s bankruptcy has been selected as the stalking horse to spur a bidding process for the company, which filed for Chapter 11 in Delaware last month.
This story first appeared in the April 2, 2015 issue of WWD. Subscribe Today.
In lieu of cash, Comvest has agreed to a $13 million credit bid. The credit bid will be used to forgive $13 million in debt owed to the lender, the filing in bankruptcy court said. The court document also said that Karmaloop’s financial adviser Consensus reached out to 150 parties regarding a sale of the streetwear e-tailer, but couldn’t find a buyer.
While West and Dash have said they are interested in buying the bankrupt firm, there was no indication in court documents that they had made any overtures to Karmaloop.