Logan Paul and KSI's Prime drink brand collapses in Australia
The Australian company behind Logan Paul and KSI's Prime sports drink has collapsed into administration with millions in debts and only about $85,000 in the bank. Administrator Alice Fay Ruhe of The Ruhe Group was appointed this week, with a creditors meeting on July 17 and a Federal Court wind-up hearing on July 31.
Prime became a viral sensation after its 2022 launch, fueled by the massive online followings of YouTubers Logan Paul and KSI. But the Melbourne-based Australian arm of the influencer-backed brand is now in financial freefall, according to reports from news.com.au and 7NEWS.
Key Takeaways
- Congo Brands Australia, the local company behind Prime and Lunchily, entered administration this week.
- The firm reported $7.92 million in debts, a $1.42 million net loss in 2024, and roughly $85,000 in the bank.
- Sales halved to $14.5 million from $31 million, with inventory slashed from $28.9 million to $1.7 million.
- Packaging company Orora Group filed a Federal Court wind-up application in June; a hearing is set for July 31.
- A first meeting of creditors is scheduled for Friday, July 17, 2026.
Why did Logan Paul and KSI's Prime drink brand collapse in Australia?
Financial records filed with the Australian Securities and Investments Commission paint a stark picture. In its last report lodged in September, Congo Brands Australia said sales had halved year on year to $14.5 million from $31 million.
The Melbourne-based company posted a net loss of $1.42 million for the 2024 financial year. It carried $7.92 million in debts against just $84,855 in the bank, according to the filings cited by Australian media.
Inventory holdings also plummeted from $28.9 million to $1.7 million between 2023 and 2024, including a $4.57 million writedown of stock. The company is directed by US-based Congo founder Max Clemons and Peter Davison.
What happens next for Congo Brands Australia?
Administrator Alice Fay Ruhe of The Ruhe Group took control of the business on Tuesday, 7NEWS reported. Her appointment places the company's future in the hands of insolvency professionals while creditors assess their options.
A first meeting of creditors is scheduled for Friday, July 17. That gathering will give suppliers and other stakeholders a formal chance to understand the scale of the collapse and what recovery might be possible.
The administration follows a June lawsuit by packaging company Orora Group, which filed a Federal Court application to wind up Congo Brands Australia. That case is scheduled for a hearing on July 31. Wind-up applications are typically brought by creditors seeking to recover unpaid debts.
Does this mean Prime is finished in Australia?
Not necessarily. Administration is a restructuring process, not an automatic shutdown. The Australian arm has stated it relies on its Kentucky-based global holding company to meet liabilities and has received a commitment to support the business for the foreseeable future, according to its financial report.
Prime launched in 2022 with enormous hype. Woolworths once canceled a promotional event featuring Logan Paul and KSI over fears officials could not control crowds. Health experts also issued warnings about the brand's energy drink over its high caffeine content.
Congo Brands Australia also distributes Lunchily, a snack brand jointly founded with MrBeast. The broader Prime brand remains a global product, but the Australian subsidiary's troubles mark a dramatic reversal for one of the internet's most hyped beverage launches. For more offbeat business meltdowns, see our Bizarre News & Florida Man coverage.