Australian brand General Pants Co has reportedly signed a deal to sell troubled label Ksubi through its stores, ending months of uncertainty for the brand.
According to AAP, the retailer has formed a distribution agreement with US-based Breakwater Investment Management (the company which holds security of Ksubi’s intellectual property) to sell the brand’s products through its stores.
SmartCompany reported last month Ksubi’s receivers and managers were looking for a local strategic partnership for distribution.
David Iannuzzi and Murray Godfrey from Veritas Advisory were appointed as receivers and managers to the brand on December 17 last year.
Iannuzzi told SmartCompany in March a domestic retailer was doing due diligence on the business.
He also said at the time under the deal Ksubi’s intellectual property would remain in the hands of Breakwater, which obtained the rights to the company from Bleach Group (now Mentmore), earlier this year.
SmartCompany contacted General Pants Co and Iannuzzi this morning, but received no comment prior to publication.
“This new partnership gives the brand the best chance to fulfil its potential without any of the obstacles it may have endured recently,” General Pants Co chief executive Craig King said in a statement to AAP.
Ksubi, originally founded by Dan Single and George Gorrow, became known for its outlandish PR stunts in the early 2000s.
In 2001 it staged a runway show where 200 rats were released, but it’s been speculated these costly stunts were too expensive and contributed to its financial problems.
Previously it was placed into administration in 2010, but was rescued by Bleach Group for around $5 million.
In early 2013, the Australian Securities and Investments banned Single from managing or directing a company for three years, after administrators found Ksubi had traded while insolvent.
In its latest administration, 60 staff were fired from the brand’s head office, while its seven stores were also closed in February and Ksubi’s remaining stock has been sold through a Sydney-based pop-up store.
