Former Karmaloop’s Chapter 7 bankruptcy dismissed at trustee’s request

By Caroline Salls

Pittsburgh, March 9 – KL Wind-Down, Inc.’s, formerly Karmaloop, Inc., Chapter 7 bankruptcy case was dismissed Wednesday by the U.S. Bankruptcy Court for the District of Delaware at the request of trustee Jeoffrey L. Burtch.

As previously reported, Burtch said cause exists to dismiss the cases as there are no unencumbered funds and assets available to administer the KL Wind-Down cases and estates.

According to the motion, “the trustee is unable to administer these cases. Moreover, in light of the absence of assets in these estates, no purpose is served by having these cases remain in Chapter 7. As such, the trustee believes that cause exists to dismiss these cases under section 707 (a) of the Bankruptcy Code.”

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, 2015. The Chapter 11 case number is 15-10635.

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