Karmaloop Owner Expects 200M Dollar Sales Pulls the Plug On Cable Channel Plans

by Karmaloop Rep Codes

Karmaloop.com, an online streetwear retailer based in Boston expects to sales to reach $200 million this year and is considers the idea of going public with 14 months, this according to CEO and founder Greg Selkoe in an interview.

However, Karmaloop abandons plans of a cable TV channel debut after delays in launching the channel.

“We thought it was going to be launched at the end of 2012, but Comcast told us it was going to be more like mid-2013, but they couldn’t give the exact date,” Selkoe said in an interview.

Selkoe reveals that Karmaloop.com has already invested $7 million to get the TV debut off the ground but the company refuses to spend more amidst delays in broadcasting. A chunk of the invested money went to creating original content that will be presented on Karmalooptv.com. By March, a new, more robust version of the website will roll out.

Selkoe admitted of having other doubts about launching the cable TV channel, which eventually led to scrapping the cable channel plans. The Karmaloop TV channel was set to feature movies and short films that define the culture that the retail giant wants to emulate.

The plan went as far as picking out which programs will be played, which will be shown from the KarmaloopTV.com as well. Grammy winner and clothing designing Pharrell Williams, one of the members of the group The Neptunes, was slated to be Karmaloop TV’s creative director.

Karmaloop TV, which is currently did filming in New York, was also set to expand production to other parts of Boston in an effort to boost the reach of the company. In fact, Karmaloop already built a 5,000 square feet studio in its 334 Boylston St. headquarters.  A majority of Karmaloop.com’s fashion-related content will be shot at its new Boston studio.

Meanwhile, Karmaloop’s top-line growth and IPO plans is getting to a point where a list of acquirers is getting smaller.

“Very few people can afford us,” Selkoe said.

Prior to the 81% increase two years ago, Karmaloop’s revenue soared to $130 million in 2011, Selkoe revealed. With more plans in total domination, the company is backed by over $35 million in venture capital from Insight Venture Partners. Selkoe predicts that the 14-month timeframe is enough to get everything done in time for Karmaloop to go public.

By going public, Karmaloop.com will be able to stay in Boston, where it was founded and where it is currently based. With more than 200 employees under the company, Selkoe had no plans to move headquarters any time soon.

“I don’t want to move our headquarters — I want to keep it in Boston,” he said. Moving the company someplace else, even by attractive acquirers, is a deal breaker.

“I’ve kept the company in Boston for 12 years against the advice of a number of people, who said ‘This is a fashion company, this is not a company that should be in Boston,’” Selkoe said.

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