The headline-grabbing co-founder of cult Sydney brand, Ksubi, has been banned from managing companies following an investigation by ASIC.
The Australian Securities and Investment (ASIC) has put a three year ban on designer Dan Single, and is investigating whether his company traded while insolvent.
Ksubi, a Sydney-based streetwear label that rose to global fame last decade, entered voluntary administration in early 2010 following claims of company mismangement.
According to The Australian, Single and Ksubi’s co-founding director, George Gorrow, have now been hit with a $3 million claim for trading while insolvent.
Single, famous for his high-profile lifestyle and recent engagement to an Australian model, has been blacklisted from being a director or managing companies.
The ban was made on the basis that Single has been a director of multiple companies that have folded and not been able to repay creditors.
Ksubi and its associated companies collapsed in January 2010 while owing $9 million, following a string of extravagant catwalk shows and overseas store openings.
The company was bought out by Bleach Group and still trades under the same name, and has spent the last two years opening new stores in locations like Chapel Street and Sydney’s Paddington.
Bleach Group, which also owns Insight and local women’s label, Something Else, have not be able to be contacted by Inside Retail.
Ksubi has numerous stores across Australia, as well as several overseas in cities like New York, and is stocked in large chains like General Pants Co.
Single and his model fiance, Bambi Northwood-Blyth, have just released small-time fashion labels in collaboration with General Pants this year.
According to The Australian, only the secured creditor Westpac has recovered part of its $4.82 million debt from the 2010 administration.
The department store chain, David Jones, ended its relationship with Ksubi late last year following poor sales.
“We have decided to end our business relationship with the brand as a result of ongoing declining sales,” said Donna Player, David Jones Group executive, merchandise, at the time.
“From a commercial perspective our focus is on maximising our return per square metre of selling space and unfortunately Ksubi’s sales have been on a declining trajectory for a number of seasons.”
In the last few seasons, Ksubi has dropped its once extreme pricetags down to around $200 for a pair of jeans, in line with the denim market’s overall price-conscious trend.
Gorrow departed the company in late 2012, as the company announced it was working on a children’s diffusion line with discount department store chain, Target.
