KSI and Logan Paul’s Prime Faces Australian Collapse
Prime, the hugely popular beverage brand backed by YouTube stars Logan Paul and KSI, has suffered a major setback after its Australian business entered voluntary administration with millions of dollars in debt and less than $85,000 remaining in its bank account.
According to recently released financial records, Congo Brands Australia—the company responsible for distributing Prime and Lunchly in Australia—has collapsed into administration after reporting significant financial losses. Administrator Alice Fay Ruhe of The Ruhe Group has been appointed to oversee the company’s affairs, with the first creditors’ meeting scheduled for next week.
The financial figures paint a worrying picture. Congo Brands Australia’s latest filings revealed sales dropped dramatically from $31 million to $14.5 million year-over-year. The company also posted a net loss of $1.42 million while carrying total debts of approximately $7.92 million. At the time of filing, it had just $84,855 in cash available.
The decline was also reflected in its inventory. Stock levels fell from $28.9 million to $1.7 million, including a $4.57 million write-down of unsold products, highlighting the sharp fall in demand for Prime across the Australian market after its explosive launch.
Prime burst onto the scene in 2022 and quickly became one of the most sought-after drinks in the world. Fueled by the enormous online influence of Logan Paul and KSI, bottles regularly sold out and were even resold for hundreds of dollars during the height of the craze. The brand later secured major sponsorship agreements with organizations including Arsenal, FC Barcelona, the UFC, and the Los Angeles Dodgers.
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However, the company has faced several challenges in recent years. Prime has been involved in multiple legal disputes, including lawsuits over alleged manufacturing agreements and claims surrounding certain product ingredients. The brand’s energy drink also came under scrutiny from U.S. lawmakers over concerns about its high caffeine content and marketing toward younger consumers.
Adding to the Australian company’s troubles, packaging supplier Orora Group filed legal action earlier this year seeking to wind up Congo Brands Australia over alleged unpaid debts. A Federal Court hearing is scheduled for July 31.
Despite the Australian subsidiary’s financial collapse, the global Prime brand remains privately owned by Congo Brands, with Logan Paul and KSI each holding a reported 20% ownership stake while Congo Brands controls the majority. Neither Logan Paul, KSI, nor Congo Brands has publicly commented on the Australian administration.
Entering administration does not necessarily mean the business will be liquidated. The process allows administrators to assess whether the company can be restructured, sold, or returned to profitability. The outcome is expected to become clearer following the upcoming creditors’ meeting and the Federal Court proceedings later this month.
While Prime remains one of the world’s most recognizable influencer-backed beverage brands, the collapse of its Australian arm highlights how quickly demand has cooled in one of its key international markets.
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