Silver lining to Ksubi debt cloud

A powerful business venture between streetwear supplier Bleach and Quicksilver Europe founder Harry Hodge was formed during the thick of Ksubi Group’s financial woes, it has been revealed.

The joint venture came to head at a creditors’ meeting late last month, where the two parties offered to acquire all Ksubi Group assets for $5 million plus interest on the debt owed to secured creditor Westpac. Ksubi went into administration on January 11, owing $4.3 million to Westpac, $3.8 million to unsecured creditors and approximately $600,000 to priority creditors.

According to a presentation from administrator Paul Andrew Billingham, Bleach and Hodge first attempted to join under the company name K10 before Christmas, around the same time a restructure of the Ksubi Group was first proposed. However, both the venture and restructure failed to eventuate, with the newly formed partnership now titled K11.

“K11 will be a new shelf company with no track record of trading,” Billingham said.

In addition to being a founder of Quicksilver’s European arm, Hodge is understood to have purchased shares in Ksubi as far back as 2007. Bleach executive Mark Byers was not able to comment on whether his new bid under K11 would result in further potential acquisitions outside of the Ksubi Group.

“We are still in a state of limbo [regarding the] finalisation of this matter so really there is nothing that I can tell you right now,” he said.

Department store David Jones, which recently partnered with Ksubi on an exclusive diffusion line, was understood to have been supportive throughout its administration but pushed for a resolution by the end of January. The sale was still proceeding at the time of press.

Assia Benmedjdoub