Karmaloop seeks $2.92 million from pre-bankruptcy transfer deal

By Kali Hays

New York, June 16 – Karmaloop, Inc. is looking to recover $2.92 million in payments and interest from TC Ops, LLC related to a pre-bankruptcy agreement, according to a complaint filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

In late 2014, Karmaloop entered into an inventory supply agreement with TC Ops affiliate TC Tradeco LLC, and on Jan. 23, 2015 the company transferred 86,427 inventory units to TC Ops valued at $1.2 million.

According to the complaint, TC Ops has not made a payment to Karamloop for the inventory, and the company is now seeking interest on the amount “at the highest legally permissible rate.”

Karmaloop also asked that the court order TC Ops to pay any costs related to the pursuit of the complaint and any attorneys’ fees.

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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