Karmaloop seeks approval of bid procedures for $13 million asset sale

By Caroline Salls

Pittsburgh, March 31 – Karmaloop, Inc. requested court approval of the proposed sale of substantially all of its assets, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Lender agent Comvest Capital II, LP, will act as the stalking horse bidder for the proposed sale. Comvest will credit bid $13 million for the assets, in addition to providing other consideration, including the assumption of liabilities and payment of cure amounts.

Competing bids are due by 5 p.m. ET on May 13. An auction will be held on May 19, if needed.

The minimum overbid amount will be $250,000, plus the amount of any qualifying fees or reimbursements, if offered. Subsequent bids must be in minimum increments of $100,000.

If an offer other than the stalking horse bid serves as the starting bid, up to $1 million in fees and reimbursements could be paid, the motion said.

Karmaloop requested an April 15 hearing on approval of the bid procedures.

Karmaloop, a Boston-based cross-platform digital commerce and media property company specializing in the sale of global streetwear fashion and culture, filed for bankruptcy on March 24. The Chapter 11 case number is 15-10635.

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