West Coast-based apparel and footwear retailer Shiekh Shoes LLC has acquired Boston-based e-commerce streetwear retailer Karmaloop, which filed for Chapter 11 bankruptcy protection last year, having run up debts over $100 million. The terms of the sale were not disclosed.
This is Karmaloop’s second sale in two years. In May 2015, a federal bankruptcy court judge approved a $13 million sale of the company to a group that included Florida-based Comvest Capital and Chicago-based CapX Partners. They replaced company founder Greg Selker as CEO with Seth Haber.
Shiekh Shoes says it intends to restore the Karmaloop’s reputation to being a trusted and reputable company that puts its customers first. “Shiekh Shoes LLC is always on the hunt for strategic acquisitions that will strengthen our overall portfolio,” said Matt Fine, president of Shiekh Shoes. “Karmaloop is a company with a rich history and a strong brand in a consumer space in which we are deeply familiar. There is a tremendous opportunity to re-tell the Karmaloop story and grow the brand. In addition, we see additional opportunities to leverage the Karmaloop assets to grow our existing businesses in both the brick and mortar and e-commerce channels. There is extraordinary value in this deal and we look forward to bringing Karmaloop into the fold.”
Launched in 1991, Shiekh Shoes is a privately-owned company with nearly 140 brick and mortar stores as well as their own online store, www.shiekhshoes.com.