Ragtrader.com.au can reveal the document served to Ksubi co-founder Dan Single, following his three-year management ban by corporate watchdogs.
Single was slapped with the three-year management ban following an investigation filed with the Australian Securities and Investments Commission (ASIC) for mismanagement of the company.
This was the notice served to Single.
The iconic streetwear label, co-founded by by Gareth Moody, Dan Single, George Gorrow, Paul Wilson and Oscar Wright, collapsed into administration in early 2010 following claims of company mismangement.
An ASIC investigation into the company's affairs, headed by liquidator, Paul Billingham, has since uncovered that the company traded whilst insolvent from January 2009.
Documents obtained by ragtrader.com.au also revealed that Billingham issued an initial claim understand on directors Single and Gorrow for insolvent trading pursuant to sections 588G and 588M of the Corporations Act.
Section 588M of the Act entitles a creditor who has suffered a loss as a result of a director contravening section 588G to seek to recover that loss from the responsible director.
Billingham also stated at the time that he was also investigating a claim against a potential shadow director for insolvent trading, and that this investigation was continuing.
As previously reported in Ragtrader [February 26, 2010], Ksubi was juggling close to 100 repayment arrangements with trade creditors in the lead-up to its voluntary administration, “drip feeding” them funds as it plunged into $9 million worth of debt.
To date, the total unsecured creditor claim is reportedly $4,106,622.
Ksubi still trades under the same name after being sold to new owner K10 (part of the Bleach group), however, both Single and Gorrow left the brand last year to focus on alternative ventures.
Single has since signed an exclusive deal with chain retailer General Pants to design a solo menswear line, DAAN, which launched to market last month.