The Ksubi denim brand has managed to emerge from voluntary administration, with its parent company now controlled by a number of investors and shareholders, it has been announced.
It comes after the business collapsed in January, reportedly due to rising debts and lower-than-sustainable margins. The company’s four stores have continued to operate during the administration period.
It is understood the company is now controlled by co-founders Dan Single and George Gorrow, investor Harry Hodge and shareholders of fashion group Bleach, which owns the surfwear brand Insight and designer brand Something Else.
“In January 2010 Ksubi entered into voluntary administration through Grant Thornton in an effort to restructure and consolidate the denim fashion label’s business,” Ksubi said in a statement.
“This process is now complete.”
Hodge will now serve as executive chairman of the restructured company, with two Bleach executives, Tim Grainger and Mark Byers, to also serve on the board. More board members will be announced at a later date.
“The new business model will allow Ksubi to focus on the creative development of the brand whilst leveraging the significant production strength of the Bleach group,” Hodge said in a statement.
Both Single and Gorrow are set to serve as creative directors, continuing their responsibilities held before the restructure.
“The past year has been very difficult, this new business model with experienced management is what Ksubi has always lacked,” Gorrow said.
“Both Dan and I have never felt more inspired and positive about the brand. We have already experienced a huge change.”
Single and Gorrow placed the company into voluntary administration earlier this year, saying at the time it was the “only way to ensure the future of Ksubi”, and that they were struggling to “achieve the margin necessary to fund the growth and development of the brand”.
The collapse came as a surprise. Gorrow and Single had been listed on the BRW Young Rich List in 2009, valued at $24 million, but it is understood that poor margins, higher debts and a sudden fall in the value of the Australian dollar in late 2008 hurt the business.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
