Picked up from Rag Trader @ http://www.ragtrader.com.au/news/ksubi-saved

SYDNEY: Creditors for embattled denim brand Ksubi have voted in favour of a joint venture with streetwear manufacturer Bleach, despite a competing proposal from another company.

The decision was made at the second meeting of creditors yesterday, held at the offices of administrators Grant Thornton in Sydney. Creditors also agreed that the group’s liabilities will be liquidated.

Ksubi Group, owned by Dan Single and George Gorrow, went into administration earlier this year. As reported in the February 12 edition of Ragtrader magazine, administrators initially recommended the Ksubi companies be sold to Quiksilver Europe founder Harry Hodge and Ksubi distributor Bleach.

The proposal from the two parties was pitched under the title K11 and Ragtrader understands this proposal is what will go ahead.

Prior to the second meeting an unnamed party had put forward a superior but conditional offer to purchase the group.

“In the event that the offer becomes unconditional and still remains superior to that of K11 then the administrators will be forced to conclude that the rationale behind the recommendation at the first meeting of creditors, whereby the business should be sold under the K11 proposal, may no longer be valid,” the latest creditors report noted.

There have been approximately 30 unsolicited expressions of interest in purchasing the brand and/or assets of the Ksubi group of companies.