Karmaloop
| Company type | Private |
|---|---|
| Industry | E-commerce, Retail |
| Founded | 2000 |
| Founder | Greg Selkoe |
| Fate | Acquired by Shiekh Shoes in 2016 |
| Headquarters | Boston , United States |
| Products | Streetwear, Apparel |
Karmaloop is an e-commerce retailer specializing in streetwear, established in 2000 by Greg Selkoe and later acquired by Shiekh Shoes in 2016.
History
In 1999, Greg Selkoe founded Karmaloop from his parents' basement located in Jamaica Plain, Boston. Drawing inspiration from urban culture elements such as breakdancing, graffiti, and street fashion, Selkoe's vision was to provide widespread access to exclusive boutique streetwear labels.
A brick-and-mortar location was launched on Boston's Newbury Street in 2005, showcasing items from the online store alongside unique products. This physical outlet functioned as a testing venue for merchandise but ceased operations in 2011 due to insufficient profitability. Concurrently, Karmaloop broadened its digital presence through various platforms: the women's apparel site MissKL, flash-sale platform PLNDR, skateboard retailer Brick Harbor, marketplace Kazbah, subscription box Monark Box, and the digital channel KarmaloopTV, which was developed in collaboration with Pharrell Williams and Katie McEnroe.
By 2011, the company's revenue had increased by 81%, reaching $130 million. Growth persisted into 2012 and 2013; however, financial challenges surfaced in 2014, driven by debt accumulation and underperformance of ventures such as Monark Box and MissKL.
In 2015, Karmaloop filed for Chapter 11 bankruptcy protection while generating $80 million in annual sales but carrying over $100 million in liabilities, including $19 million owed to suppliers. The company was acquired by Comvest Capital and CapX Partners, who installed Seth Haber as CEO with Selkoe moving into an advisory capacity.
In March 2016, Shiekh Shoes purchased Karmaloop for an undisclosed amount. Despite this acquisition, Shiekh Shoes itself filed for Chapter 11 bankruptcy in 2017.
Marketing profile
Karmaloop focuses on the "Verge Culture" demographic—innovative digital natives with interests spanning music, fashion, art, technology, and action sports. Its marketing approach capitalizes on new media channels by maintaining an extensive email subscriber base and hosting interactive social media livestreams featuring musical acts and celebrity appearances. These strategies bolster online sales, foster brand loyalty, and enhance Karmaloop's standing within its specialized lifestyle market.