This is so sad! It was just announced that denim brand ksubi is struggling financially.
Here are the details from the story. To learn more, visit the Sydney Morning Herald.
The Australian company behind local denim fashion label ksubi hasbeen placed into voluntary administration to help ensure its future.
Co-foundersDan Single and George Gorrow said they had been “struggling to achievethe margin necessary to fund the growth and development of the brand”.
Voluntary administration was the “only way to ensure the future of ksubi”, they said in a statement.
“Weare and will remain fully committed to the ksubi brand and in assistingthe administrator to achieve the best possible outcome,” they said onMonday.
The pair said there had been “significant attempts” in recent times to address ksubi’s financial difficulties.
I hate it when a great brand struggles this way. Ksubi was definitely on the forefront of denim fashion, and I hope that the brand can pull itself out of this.
And, for the Americans who aren’t too familiar with the legalese, here’s a definition of Voluntary Administration (source):
A formal moratoriumarrangement under the Corporations Act usually 28 days (although it canbe extended a further 60 days) where the company which is insolvent orabout to become insolvent and its affairs are put under the control ofan independent third party at the end of which a decision is made bycreditors as to the fate of the company. Voluntary Administrations canbe implemented by the company, a liquidator or provisional liquidatoror a creditor holding a charge over all or substantially all the assetsof the company.
So, this sucks. Here’s to hoping that ksubi can find their way out of this.