The Australian company behind sports drinks Logan Paul and KSI’s Prime has split up.
Administrator Alice Faye Ruhe of the Ruhe Group was appointed this week to oversee Congo Brands Australia, with the first meeting of creditors scheduled for next Friday.
Congo Brands Australia is the local business behind influencer-led brands such as Logan Paul and KSI’s Prime and Lunchily, which was co-founded with Mr Beast.
Launched in 2022, Prime quickly became extremely popular among Australian schoolchildren thanks to intense hype from Logan Paul and KSI – two well-known social media influencers.
But in the company’s latest financial report, filed with the Australian Securities and Investments Commission in September last year, Congo Brands Australia said its sales had halved year-on-year to $14.5 million from $31 million.
The Melbourne-based company made a net loss of $1.42 million in its 2024 financial year, with debts of $7.92 million and just $84,855 in the bank.
Congo Brands Australia also reduced its inventory from $28.9 million to $1.7 million between 2023 and 2024, including a $4.57 million share write-down.
The financial report shows Congo Brands Australia is run by Congo US founder Max Clemons and Peter Davison.
It said the Australian unit relied on the Kentucky-based global holding company to fulfill its obligations, adding that Congo Brands Australia had received a “commitment to support the company for the foreseeable future”.
The appointment of administrators came in June when packaging company Orora Group filed for liquidation of Congo Brands Australia in the Federal Court.
No details of the case are available to the public, but winding up petitions are typically filed by creditors seeking to force a company into liquidation due to outstanding debts.
A Federal Court hearing is scheduled for July 31.