After 15 years in business, Karmaloop is reportedly on the verge of bankruptcy.

The online retailer, known for its wide selection of affordable streetwear, is struggling to avoid Chapter 11 filing, sources tell the NY Post. Insiders say CEO and founder Greg Selkoe is currently talking to investors to pay off a part of the Karmaloop’s secured debt while adding $10 million in working capital to the company. But if nothing comes out of those discussions, then investors, including the New York VC fund Insight Venture Partners, will be liable for up to $100 million in writedowns on debt and equity.

Continue reading →