SYDNEY: The relationship between Ksubi and its proposed restructuring partner is a long-standing one, with the two companies entwined in manufacturing and distribution since July last year.
Ksubi was placed into voluntary administration on January 11 this year, owing over $8 million. At the time of press, its administrators were negotiating a joint venture between the denim brand and Sydney-based streetwear operator Bleach.
Bleach director Mark Byers said creditors had agreed in principle to a new venture in which Bleach would purchase the Ksubi business as a major investor.
Byers told Ragtrader the proposed deal would be significant enough to cover Ksubi’s secured debt with Westpac, which comprised over half of the $8 million total, and to preferential creditors including staff.
He said unsecured creditors could expect a return on their money following the realisation of some existing Ksubi stock and receivables, with the percentage not yet confirmed.
To find out more pick up a copy of Ragtrader's January 29 issue.