Kanye West To Buy Bankrupt Clothing Company Karmaloop?

JenniferP

After facing some financial woes and filing bankruptcy, Karmaloop may just be available for purchase. And just who might be willing to buy the street wear clothing company? None other than hip hop king and Kim Kardashian’s other half, Kanye West.

According to the Boston Globe, Kanye West posted a video on Instagram Thursday night with fellow hip hop mogul Damon Dash, where Dash announced that “We decided to go buy Karmaloop.”

Dash then added, “We just talked about it, so it’s going to happen.”

So is it the truth? Is it as easy as an Instagram announcement? Are Kanye West and Damon Dash going to be the newest owners of clothing company Karmaloop?

Not just yet, according to Karmaloop’s current owner and founder, Greg Selkoe.

Selkoe recently took to Twitter to let the public know who still owns Karmaloop, saying, “I am still gonna be owner no matter what we do. I am Karmaloop!”

Although Karmaloop’s founder, Selkoe, states that he is still the owner, he has made references to talking to Kanye.

Selko released an official statement as seen on the Boston Globe, saying, “As we confirmed earlier this week, Kanye and Dame are among several people we’ve spoken with about Karmaloop… We’re having a lot of conversations and seeing intense interest in our brand.”

Other than that, nothing has been confirmed yet.

According to the Wall Street Journal, Karmaloop filed for bankruptcy on Monday “with more than $100 million in debt.” Karmaloop, which was founded in 1999, is looking to borrow $31 million “to refinance some debt and pay vendors and suppliers.”

So what was the cause for Karmaloop’s recent financial downfalls?

In a statement on the Boston Globe, Selkoe, a Harvard graduate, said, “We tried to do too many things. We launched too many different sites in too short of a period of time.”

Karmaloop, which was started in a basement, sells over 400 brands of men’s street wear entirely online.

Would hip hop superstars Kanye West and Damon Dash be able to give the clothing company new life and pull Karmaloop out of this financial crisis? We’ll just have to wait and see.

[Photo Courtesy of Highsnobiety]