Karmaloop may file for bankruptcy this week, The New York Post reported today. The Boston-based streetwear site — a dot-com darling just a few years ago with ambitious plans for growth — is scrambling to avoid a chapter 11 filing. Chief Executive Greg Selkoe is in talks with investors, including a New York-based private-equity firm, to pay off a portion of the company’s secured debt while adding $10 million in working capital to the business. Those talks could fall apart, leaving Karmaloop’s investors liable for as much as $100 million in writedowns on debt and equity. After racking up nearly $120 million in revenue in 2013, Karmaloop’s business plunged below $100 million last year as debt obligations crippled operations. The site’s troubles have spilled onto social media, with irate customers complaining on social media about undelivered merchandise.
