The hip-hop world is in a buzz as Karmaloop, one of the largest, street wear retailers, takes a huge tumble. The Boston-based retailed website filed for Chapter 11 bankruptcy this week. Listing with up to $50 million is assets, but up to $100 million to $500 million in liabilities, the company has a swarming about of debt– $1 million to Google Inc., and a whopping $8 million to Insight Venture Partners of New York according to the BostonGlobe. But, may Damon Dash and Kayne West be taking over?

In his first post-Breakfast Club interview, hip-hop mogul Damon Dash speaks of he and Kanye being out Karmaloop. Maybe Dame and Kanye can use their cash to repay the millions in debt the company has gotten itself into.

“You don’t have to put this out until maybe Monday but me and Kanye are gonna buy Karmaloop, so you’ll probably feel that by the time this is out.” via. Hip Hop Motivation

Greg Selkoe, founder and chief exec of Karmaloop, took to the company’s twitter page to tweet his speculation:

Still, Selkoe talks that Karmaloop is still open for business despite its teetering stance. In an exclusive interview with FourPins, Selkoe says that “Karmaloop isn’t going anywhere.”

“We’ve been so promotional [with coupons and discount codes] because when you’re cash poor and need cash quickly, you have to liquidate stuff,” he says. “So we’re going to push the brand back towards its roots of being more premium, doing less discounting on the main site and to really differentiate between PLNDR and Karmaloop. But the fact is we’re not going anywhere. We’re going to honor our commitments and the company is going to be better and stronger.” via. FourPins

So there may be hope for Karmaloop!

It’s no secret that both Kanye West and Damon Dash are controversial figures with a lot to say, both of the cocky men have controversial interviews under their belt and both are currently in front of  public eye. Even though Kanye’s mouth may be a bit more unpredictable, we at MEFeater wonders who will speak out first about the Karmaloop controversy now that Greg Selkoe has weeded out rumors– Damon, or Kanye?

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