Administrators appointed for Logan Paul and KSI’s Prime drinks brand’s Australian company

The Australian company behind Logan Paul and KSI’s Prime sports drinks has collapsed into administration.

Ruhe Group director Alice Fay Ruhe was appointed to oversee Congo Brands Australia this week, with the first creditors meeting scheduled for next Friday.

Congo Brands Australia is the local business behind influencer-led brands including Logan Paul and KSI’s Prime and Lunchily, founded in partnership with Mr Beast.

Launched in 2022, Prime has quickly become hugely popular with Australian schoolchildren, thanks to the massive spotlight from two well-known social media influencers, Logan Paul and KSI.

However, in the company’s last financial report to the Australian Securities and Investments Commission in September last year, Congo Brands Australia reported that its sales had halved compared to the previous year, from $31 million to $14.5 million.

The Melbourne-based company had a net loss of $1.42 million in fiscal 2024, with $7.92 million in debt and just $84,855 in the bank.

Between 2023 and 2024, Congo Brands Australia reduced its stock holdings from $28.9 million to $1.7 million, including a stock write-down of $4.57 million.

The financial report reveals Congo Brands Australia is run by Congo’s US-based founder Max Clemons and Peter Davison.

It said the Australian arm was dependent on the Kentucky-based global holding company to meet its obligations, adding that Congo Brands Australia had received a “commitment to support the company for the foreseeable future”.

The appointment of administrators comes as packaging company Orora Group filed suit in the Federal Court in June seeking the liquidation of Congo Brands Australia.

No details of the case have been made public, but liquidation applications are typically made by creditors who want to force a company into liquidation due to unpaid debts.

A hearing for the Federal Court case is scheduled for July 31.