Karmaloop started in 2009, out of the parents’ basement of founder Greg Selkoe. It would eventually grow into a company generating more than $100 million a year. However more than 15 years later, the company filed for Chapter 11 bankruptcy, and sold, via auction, to $13 million USD.
Selkoe finally sets the record straight about the cause of Karmaloop’s downfall, in an interview with Complex, citing boutique online stores and outside capital as major influences.
The company would go on to launch a number of other speciality sites like Monark Box, Boylston Trading Co., PLNDR, and many others. But, bosts began to mount, while the returns didn’t justify each site.
“You could cite a million reasons why those businesses didn’t work. It was just a weird thing,” said Selkoe. “Before we knew it, we got ourselves in a hole. We closed one site after another, after another. It just wasn’t fast enough. The debts were mounting.”
Watch a brief exploration of the rise and fall of Karmaloop, and visit Complex for a more in-depth analysis.