Karmaloop joins growing ranks of bankruptcy filings

Karmaloop Inc., an online apparel company has become the last apparel retailer filing for bankruptcy protection. The company will seek court permission to sell assets.

Karmaloop has named ComCap Acquisition LLC, an affiliate of one or more pre-bankruptcy lenders, as lead bidder at a court supervised auction.

“The debtors’ businesses have fallen victim to the shift in retail purchasing that is occurring, especially among retailers in the young adult age bracket, as such consumers have moved away from purchasing traditional brands,” Brian L. Davies Jr., the interim chief financial officer, said in court papers.

The Boston-based company listed assets of more than 10 million dollars and debt of more than 100 million dollars in Chapter 11 documents filed Monday in US Bankruptcy Court in Wilmington, Delaware, reported Bloomberg.

This way, Karmaloop joins the likes of Wet Seal Inc., Cache Inc., Delia’s Inc., Deb Stores Holding LLC, Loehmann’s Inc. and Coldwater Creek Inc. in filing for bankruptcy due to increased competition in the specialty retail fashion industry.

Founded in 1999, Karmaloop specializes in the sale of global streetwear fashion and culture. It sells more than 400 brands of apparel, shoes and accessories and cater for male and female aged 18 to 35.