Further to the story we posted from Runwayreporter a few days ago, even more rumors are flying about now in regards to the future of Ksubi. The latest being that Diesel founder Renzo Rosso is in talks to bail Gorrow and Single from their alleged $8 million (AUD) debt.

Single and Gorrow have categorically denied those rumours in a statement issued to the Sydney Morning Herald, stating:

“It’s absolutely not true that Ksubi has been bought out by Diesel or any other party. We have never even met with them before. We are, however, heading to Asia and Europe next week to talk business with our manufacturers and distributors.”

Minority shareholder Harry Hodge backed this up in another statement to the SMH:

“Sure, we have had redundancies and trading is difficult at the moment, but it’s difficult for everyone. We have had to raise capital in the past and we may well do that again in the future”.

All this sounds to my ears like definite cash flow problems, Ksubi definitely haven’t wasted time in trying to raise capital, in the last 2 months they have had 4 sales; Samples, International Stock, friends and family, and an upcoming sale at the Paddington Town Hall next week.

So you can probably connect the dots there.

This comes in a stark juxtaposition to what is widely considered to be the New Zealand equivalent of Ksubi – Stolen Girlfriends Club – are going from strength to strength, sales are up compared to last year, and they have just been awared the DHL Export Scholarship Awards. Beating out the other two Finalists, Jimmy D and Salasai to claim the $10,000.00 prize.

source: www.isaaclikes.com

the Stolen Girlfriends Club outfits used in competition, modelled by Olivia O’Driscoll and Levi Clarke.

Of course only time will tell what the future will hold for Ksubi, I think it would a real shame if they did fold, but I doubt that is likely. It also raises the question of what is to happen to (now) ex designer Tulia, previously of Zambesi, we have already contacted Zambesi to see if they will be opening their doors for her to come back and resume designing their womenswear, to which we have yet to receive a reply. A designer of Tulia’s caliber should never have trouble finding work though, let’s hope we can say the same about Dan and George..