Ragtrader.com.au has the official word on the fate of cult streetwear label Ksubi.
Ksubi has been snatched from the fire yet again, with its saviour revealing a new international growth strategy for the business.
Apparel and fashion accessories maker Bleach Group (also known as Mentmore Group) today confirmed that it has secured the future of both Ksubi and street/surf brand Insight, through the timely backing of LA-based private investment firm Breakwater Investment Management, LLC.
The move by Breakwater, which has historically supported the business, is expected to see both labels relocate their core business to the United States.
Commenting on the latest twist, the company said this forms part of a wider strategic initiative designed to guarantee the future of these brands and establish a secure international growth platform for both labels.
“We are now in the process of assembling a world-class management and a mix of new and existing creative / design teams to expand the reach of these brands globally, as well as to identify strategic alternatives for the future of these brands in the Australian market.
"We are focusing on Europe and North America as core markets for strengthening these labels, while Australia will continue to remain the labels’ vibrant founding location. We fully intend to realise the immense global potential of these important brands.”
Breakwater said it is also currently in discussions with a world-class premium denim and fashion brand management team based in Los Angeles, California to take Ksubi and Insight under its supply, marketing, and sale and distribution infrastructure.
Breakwater with its receivers had previously assessed the operating performance of the traditional Ksubi retail outlets and come to the short term decision to discontinue the store operations.
However, the company said it may seek a local retail operating partner to support the reopening of select outlet locations and in the interim will continue with a strong online presence.
Since January 31, 2014 the affairs of Ksubi, including its seven retail stores, have been under the control of the voluntary administrator, Gavin Moss of accounting firm Vincents Chartered Accountants.
According to sources, Moss made the call to cease retail operations on February 13, 2014, allegedly without notice to Breakwater.
Ragtrader.com.au understands that until such time that a new partner is found to operate the local retail stores, Ksubi stock and associate brands will continue to operate locally online and globally via its designated distributors.
Mentmore is continuing the online store and will continue to provide customers with goods.
Australian denim super-brand Ksubi was founded by George Gorrow and Dan Single in 1999. Both Ksubi and fellow iconic label Insight are marketed and sold across Australia, Europe, Asia, and the United States.