Despite plans to acquire the company by Dame Dash and Kanye West, Karmaloop has been sold off to someone else.
According to the Boston Globe, the sale was finalized on Thursday (May 21) to a group senior leaders for a starting bid of $13 million, which was approved by a federal bankruptcy judge
Furthermore, founder Greg Selkoe is set to be replaced as chief executive.
The new owners are Comvest Capital (of West Palm Beach, Fla.) and Chicago-based CapX Partners, the only group to submit an offer to buy Karmaloop in a bankruptcy auction process.
Robert O’Sullivan, a partner at Comvest Capital, tells the Boston Globe that Selkoe will remain involved in an advisory role.
Selkoe founded the company in 1999 in his parents’ basement in Boston.