SYDNEY: The voluntary administrators for denim brand Ksubi yesterday advised creditors of a joint venture proposal which may secure the future of the brand.
The proposed deal would involve certain existing shareholders and Ksubi's manufacturing partner. A statement from the administrators said that creditors had indicated their in principle approval of the proposal. It said this would now be further negotiated and documented with a view to formalisation in the next few days.
The aim of the proposed venture is to see Ksubi's business continue as a new entity.
The information was revealed at the first creditors meeting held at the offices of the voluntary administrators Grant Thornton in Sydney.
Administrator Paul Billingham said the relationship between Ksubi and its manufacturing partner at both the operational and creative levels made it problematic to complete a deal without the manufacturer's involvement.
“Although we are a fair way from finalisation, the broad support of creditors, the Group’s lenders, its staff and customers to the joint venture proposal means that there is now the distinct prospect of the Ksubi brand surviving and flourishing," he said.
Billingham said that he had received numerous unsolicited expressions of interest in Ksubi since his appointment.
Creditors were also told that Ksubi had debt in excess of $8million. The group went into voluntary administration on January 11 this year.
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