Karmaloop Explained

Karmaloop
Type:Private
Locations:Three; Boston, New York City and Nørresundby, Denmark
Founder:Greg Selkoe
Key People:Shiekh Ellahi (CEO) -->
Owner:Shiekh Shoes LLC
Foundation:2000
Location City:Boston
Location Country:United States
Homepage:Karmaloop.com
Products:Apparel, Accessories, Footwear, Home Goods

Karmaloop is a streetwear e-commerce company.[1] It was founded in 2000 by Greg Selkoe and purchased by Shiekh Shoes in 2016.

History

Karmaloop was founded in 1999 by Greg Selkoe[2] in his parents' basement in Jamaica Plain, a neighborhood of Boston, Massachusetts. Selkoe's interests in break dancing, graffiti art, and fashion influenced his decision to focus his business on urban style and streetwear.[3] His initial concept for Karmaloop was to provide universal reach for hard-to-find boutique streetwear brands.[4]

The Karmaloop brick and mortar store on Boston's Newbury Street launched in 2005.[5] [6] The store carried products available on the website as well as limited edition items, and was often used as a testing ground for new products.[7] In a 2010 interview, Selkoe revealed that the store "never made a penny," and in 2011 it closed. In the meantime Karmaloop's online presence grew to a number of websites including online retailer Karmaloop, women's fashion site MissKL,[8] flash-sale site PLNDR,[9] online skateboard shop Brick Harbor,[10] independent marketplace Kazbah,[11] subscription service Monark Box which mailed exclusive gear to members in exchange for a monthly fee[12] and internet television station KarmaloopTV launched in collaboration with music producer Pharrell Williams and former AMC president Katie McEnroe.[13]

In 2011, the company grew by 81%, generating $130 million in revenue.[14] [15] It continued to expand in 2012 and 2013, before starting to encounter financial troubles in 2014 due to debt obligations and the underperformance of some of the new arms of the business.[15] In particular the sites Monark Box, Miss KL and Boylston Trading did not live up to expectations.[15]

In 2015, Karmaloop filed for Chapter 11 bankruptcy protection. Annual revenue had fallen to $80 million and the company was over $100 million in debt, $19 million of which it owed to vendors.[15] [16] Comvest Capital and CapX Partners purchased the company in May 2015 and announced plans to restructure its management, with Seth Haber named CEO, moving Selkoe to an advisory role.[16] [17]

In March 2016, Shiekh Shoes, a west coast footwear and apparel retailer, acquired Karmaloop for an undisclosed amount.[18] [19] However, in 2017, Sheikh Shoes filed for Chapter 11 bankruptcy protection.[20]

Marketing profile

Karmaloop employs the term "Verge Culture" to define its target lifestyle and demographic market: creative, early adopting digital natives who follow trends in music, fashion, art, technology, and action sports.[21] It utilizes new media marketing techniques with a large mailing list[22] and occasional interactive social media Livestream events, featuring musical performances and celebrity guests.[23] [24] [25] to drive online sales and build brand loyalty.[26]

Notes and References

  1. News: In the loop. 16 June 2013. Boston Globe. 20 March 2008. Liza Weisstuch.
  2. Web site: DeStefano . Mike . Takanashi . Lei . 10 January 2024 . Why Karmaloop Matters: Industry Veterans Reflect on the Site That Introduced a Generation to Streetwear . 2024-06-11 . Complex . en-us.
  3. Web site: Online streetwear retailer Greg Selkoe finds his groove . Boston Business Journal. American City Business Journals. 16 June 2013. van der Pool. Lisa. 6 May 2010.
  4. Web site: Karmaloop . Harvard Magazine. Harvard Magazine Inc. 16 June 2013. 14 December 2012.
  5. News: Karmaloop founder keeps ear to street to sell cool clothes . 16 June 2013. USA Today. 12 October 2008. Jayne O'Donnell.
  6. Web site: Karmaloop and the Verge culture. ADventures Boston. 16 June 2013. 18 October 2012. https://web.archive.org/web/20131019105956/http://www.jparker.co/ADventures/karmaloo-and-the-verge-culture/. October 19, 2013. dead.
  7. Web site: Night Lines: The Karmaloop Relaunch Bash. Boston Magazine. Metrocorp, Inc. 16 June 2013. Rachel Baker. 19 June 2008.
  8. Web site: Recent Fad for Girls Fashion. Shades of Summer Boutique. Wordpress. 16 June 2013. Elena. 21 February 2013. February 26, 2014. https://web.archive.org/web/20140226171109/http://www.shadesofsummer.com/tag/miss-kl. dead.
  9. Web site: Vote Drive: Flash Sale Site Seeks Social Media Feedback on New Brands. Accessories: The Voice of the Industry. Business Journals, Inc. 16 June 2013. Accessories Staff. 31 October 2012. January 21, 2013. https://web.archive.org/web/20130121172000/http://www.accessoriesmagazine.com/57707/vote-drive-flash-sale-site-seeks-social-media-feedback-on-new-brands. dead.
  10. Web site: Brick Harbor Aims to Give Skateboarding a New Digital Home [EXCLUSIVE]]. Mashable. 16 June 2013. Sam Laird. 3 April 2012.
  11. Web site: Interview: Making It In America With Karmaloop CEO Greg Selkoe. Complex Style. Complex Media. 16 June 2013. Jian Deleon. 29 February 2012. September 9, 2012. https://web.archive.org/web/20120909114642/http://www.complex.com/style/2012/02/interview-making-it-in-america-with-karmaloop-ceo-greg-selkoe/page/3. dead.
  12. Web site: What the Hell Happened to Karmaloop?. Caparell. Adam. 2015-07-29. Complex Networks. en. 2020-02-27.
  13. Web site: Can KarmaloopTV become the MTV of the Hip-Hop Generation?. brandchannel. 16 June 2013. Sheila Shayon. 23 September 2011. dead. https://web.archive.org/web/20130605030015/http://www.brandchannel.com/home/post/2011/09/23/karmaloop-tv-launch.aspx. June 5, 2013. mdy-all.
  14. Hypebeast. Hypebeeast Tade: Greg Selkoe - CEO/Founder of Karmaloop.com and Karmaloop TV. February 1st, 2012.
  15. Web site: Karmaloop is Reportedly on the Brink of Bankruptcy. 23 March 2015. Strong. Rebecca. StreetWise. BostInno. March 24, 2015. April 2, 2015. https://web.archive.org/web/20150402095915/http://bostinno.streetwise.co/2015/03/23/karmaloop-problems-karmaloop-may-file-for-bankruptcy-report/. dead.
  16. Web site: Boston Globe. Beta Boston. Karmaloop sale approved, CEO Selkoe to be replaced. Luna. Taryn. 21 May 2015. November 13, 2015. November 17, 2015. https://web.archive.org/web/20151117020722/http://www.betaboston.com/news/2015/05/21/karmaloop-sale-approved-ceo-selkoe-to-be-replaced/. dead.
  17. Karmaloop Names Industry Veteran Seth Haber CEO. PRNewswire.
  18. Web site: Will e-retailer Karmaloop step in a new direction under Shiekh Shoes?. Matt. Linder. March 23, 2016. Internet Retailer.
  19. Web site: Boston Globe. Karmaloop acquired by California retailer. 23 March 2016. Conti. Katheleen. Woolhouse. Megan.
  20. Web site: Shiekh Shoes Files for Bankruptcy After Owing Nike $16 Million USD. November 30, 2017. September 30, 2023. Hypebeast. en.
  21. Inc.com The ADHD CEO: Greg Selkoe, Karmaloop; Liz Welch, May 2012.
  22. News: Greg Selkoe. 16 June 2013. HuffPost. 16 June 2013.
  23. Web site: Annear. Steve. BostInno. StreetWise. Karmaloop Hires Webcam Strippers to Livechat for 'Titillating' Cyber Monday Campaign. 26 November 2012.
  24. Ed Carrasco, New Media Rock Stars. Live Now: Karmaloop hosts "Freak-a-thon" Live Stream Featuring Bun B and Travie McCoy. December 10th, 2012.
  25. Tolisa Abrams, You Heard That New. Tune In to Karmaloop's Freak-a-Thon Live Stream Tonight at 8pm . May 9th, 2013.
  26. Web site: Muto-Porter. Maria. Entrepreneur. Karmaloop's Greg Selkoe on Social Media & the Verge Culture. 27 April 2012.

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