Business
Prime Drink’s Australian Company Collapses Into Administration, Owing Millions With Just $85,000 Left
The Australian arm of Congo Brands, the company behind Logan Paul and KSI’s Prime sports and energy drinks, has collapsed into administration, with financial records showing millions of dollars in debt and just $85,000 remaining in the bank.
Administrator Alice Fay Ruhe of The Ruhe Group was appointed this week to oversee Congo Brands Australia, with the company’s first creditors meeting scheduled to be held next Friday. Congo Brands Australia is the local entity behind the influencer-founded beverage brands, including Prime and Lunchly, the latter of which was jointly founded with fellow content creator MrBeast.
Prime, launched globally in 2022, quickly became a phenomenon among Australian schoolchildren, fueled by intense promotional pushes from Logan Paul and KSI, the two social media influencers whose combined YouTube followings exceed 40 million subscribers. The drink’s hype-driven launch mirrored its international rollout in the United States and United Kingdom, where limited availability and viral social media attention led to bottles reselling for hundreds of dollars during the brand’s early peak.
According to Congo Brands Australia’s most recent financial report, lodged with the Australian Securities and Investments Commission in September last year, the company’s sales had halved from the previous year, falling to $14.5 million from $31 million. The Melbourne-based company posted a net loss of $1.42 million for the 2024 financial year, alongside $7.92 million in total debts and just $84,855 in cash on hand at the time of the filing.
The financial deterioration extended to the company’s inventory position as well. Between 2023 and 2024, Congo Brands Australia’s inventory holdings dropped sharply, falling from $28.9 million to $1.7 million, a decline that included a $4.57 million writedown of unsold stock, reflecting the sharp cooling of demand for the once-hyped beverage brand within the Australian market.
The company’s financial report identifies Congo’s U.S.-based founder, Max Clemons, and Peter Davison as directors of the Australian arm. The filing states that Congo Brands Australia is reliant on its Kentucky-based global parent company to meet its financial obligations, adding that the local subsidiary had received a “commitment to support the company for the foreseeable future” from the U.S. holding company at the time the report was lodged.
The move into administration follows separate legal action taken against the company earlier this year. Packaging supplier Orora Group filed a lawsuit in the Federal Court in June seeking to wind up Congo Brands Australia. Details of that case have not been made publicly available, though wind-up applications of this kind are typically brought by creditors seeking to force a company into liquidation over unpaid debts. A hearing in that Federal Court matter has been scheduled for July 31.
Prime’s rapid rise and more recent decline have played out on a global scale well beyond Australia. Founded by YouTubers Logan Paul and Olajide “KSI” Olatunji in partnership with Congo Brands, co-owned by American businessmen Max Clemons and Trey Steiger, Prime Hydration generated an estimated $250 million in retail sales during its debut year in 2022, according to reporting from The Washington Post. The brand went on to secure high-profile sponsorship deals with organizations including Arsenal FC, FC Barcelona, the UFC and the Los Angeles Dodgers, further cementing its visibility during its peak years of popularity.
That early success, however, has not been without controversy or legal challenges. In 2023, a class-action lawsuit was filed against Prime Hydration in California federal court alleging the presence of undisclosed per- and polyfluoroalkyl substances, commonly known as PFAS, in certain flavors of the drink, a claim Paul disputed at the time by citing levels well below thresholds considered reliable under Environmental Protection Agency standards. That same year, U.S. Senate Majority Leader Chuck Schumer called on the Food and Drug Administration to investigate Prime’s energy drink variant, describing it as a “cauldron of caffeine” and raising concerns about its marketing to children given the product’s 200 milligrams of caffeine per 12-ounce can. Prime has also faced a separate lawsuit from bottling company Refresco, which alleged in 2024 that the beverage brand backed out of a manufacturing agreement, with Refresco seeking $67.7 million in damages.
Beyond the legal disputes, Prime’s broader market position has cooled considerably since its 2023 peak. According to Wikipedia’s entry on the brand, Prime Hydration’s popularity had significantly declined by mid-2025, with Prime Energy cans discontinued entirely in some markets as consumer interest shifted away from the once-viral product. The company has continued attempting to diversify its offerings, announcing a Prime Protein line in January 2026, though it remains unclear whether that expansion has meaningfully offset the broader downturn in sales reflected in the Australian subsidiary’s most recent financial disclosures.
Prime’s ownership structure remains privately held, with Congo Brands controlling approximately 60 percent of the overall company and Logan Paul and KSI each holding roughly 20 percent equity stakes. Despite that minority ownership position, both influencers have continued to publicly position themselves as founders and central decision-makers behind the brand, particularly in their respective marketing efforts across American and European markets.
Neither Congo Brands, Logan Paul nor KSI has issued a public statement specifically addressing the administration of the company’s Australian subsidiary as of this report. The appointment of an administrator does not necessarily mean the Australian business will be permanently wound up, as administration processes in Australia are often used to restructure a company’s finances, negotiate with creditors, or facilitate a sale of the business as a going concern, with the outcome to be determined following next Friday’s creditors meeting.
With the first creditors meeting scheduled for next week and a related Federal Court hearing set for July 31, the coming weeks are expected to provide further clarity on whether Congo Brands Australia can be restructured, sold, or will ultimately be wound down entirely, a process that will also determine what, if any, recovery unsecured creditors of the company can expect given its currently disclosed liabilities.
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FOX Business Cheryl Casone breaks down tumbling oil prices amid U.S.-Iran deal hopes and falling Treasury yields. Carter Intelligence Group CEO Lee Carter joins the panel to discuss the psychological impact of lower gas prices on consumers.
Oil prices fell on Monday as markets embraced hopes for the de-escalation of the Iran war, despite uncertainty over the prospects for a Federal Reserve interest rate hike.
President Donald Trump on Sunday signaled he was holding off on ordering fresh strikes against Iran and said he did so because U.S. allies in the Middle East have reached the outline of an agreement to end the war, adding it would “include the Immediate, Complete and Total OPENING OF THE HORMUZ STRAIT, and an end to Iran’s nuclear threat.”
Trump indicated the negotiations would begin on Monday afternoon, which caused oil prices to slide on the potential deal to restore the flow of oil shipments through the Strait of Hormuz that have been constrained amid the threat of Iranian attacks and mines amid the conflict.
Prices for West Texas Intermediate crude, a key U.S. benchmark, were down about 6.2% during Monday morning, trading around $79.45 a barrel after a decline of about $5. Brent crude oil prices were down over 3.5% at around $79.30 a barrel.
FORGET GASOLINE: THIS OVERLOOKED FUEL COULD RAISE THE PRICE OF NEARLY EVERYTHING YOU BUY
Oil prices fell on Monday on the prospect of a deal to end the Iran war. (Todd Korol/Reuters)
A spokesman for Iran’s foreign ministry said in a report by Reuters that no negotiations with the U.S. were occurring or scheduled, adding that the only ongoing discussions were with Oman over the management of the Strait of Hormuz.
Oil prices spiked above $110 a barrel earlier this year as the conflict disrupted oil shipments from the Middle East, as tanker traffic plummeted due to the threat of missile and drone strikes by Iran as well as mines laid in the key shipping lanes of the Strait.
AAA NATIONAL GAS PRICE TOPS $4 AMID RENEWED US STRIKES ON IRAN
The Strait of Hormuz is a key chokepoint for maritime oil flows through the Middle East. (Amanda Macias/Fox News Digital)
Before the outbreak of the conflict, oil prices were in the $60 to $70 a barrel range, and the rise caused gas prices in the U.S. to surge. The national average price for a gallon of regular gasoline was $4.095 as of Monday, up 7% from a month ago and 30% from a year ago, which has pressured household budgets.
Trump wrote in a post on his Truth social media platform that Chevron CEO Mike Wirth gave “all of the reasons that his company is doing so well,” in an interview with FOX Business’ Maria Bartiromo, but added that his administration has helped facilitate that success and urged him to lower prices for consumers.
Oil shipments through the Strait of Hormuz have been severely constrained due to the risk of Iranian attacks. (Giuseppe Cacace/AFP via Getty Images)
“The only thing he conveniently forgot to mention is that, without the genius, foresight, strength, and stability, of the TRUMP Administration, the Oil Industry, and our Country itself, would be DEAD! As an example, they threw Mike and Chevron out of Venezuela, but now they’re back, far bigger and stronger than ever before, expecting to make a fortune! That goes for other Oil Companies as well…and get your consumer (retail!) Oil Prices DOWN, NOW!” Trump wrote.
The White House has previously criticized gas stations for not lowering prices, accusing them of padding profit margins.
Groups representing smaller gas stations and energy marketers have pushed back on the argument, saying that retail prices are linked to oil prices and that they typically decline over several weeks after oil prices decline due to the need to turn over higher-cost inventory.
Consumers cutting back on HFCS, not sugar, recent report says.
Consolidated net profit rose to Rs 228.41 crore from a year earlier, while revenue increased nearly 10% to Rs 2,374 crore.
Demand remained healthy in both decorative and industrial paints despite geopolitical tensions and was supported by the delayed onset of the monsoon, managing director Pravin Chaudhari said.
“Looking ahead, we anticipate that demand in both market segments will continue to remain strong despite an erratic monsoon and prevailing geopolitical situation,” he said. “Additionally, Diwali being later this year, should add a fillip to the festive demand,” he said.
Chaudhari said the geopolitical situation in West Asia disrupted supply chains and sharply increased raw material prices from March. While conditions improved midway through the June quarter, the company would continue to monitor the situation closely.
The company raised prices during the quarter to partly offset higher raw material costs. Total expenses rose more than 10% to Rs 2,116 crore, while consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) increased 7.7% to Rs 335.89 crore.
On a standalone basis, revenue rose 10% to Rs 2,299 crore, while Ebitda increased 8% to Rs 336 crore.The company announced its results after market hours on Monday. Its shares closed 3.6% higher at Rs 203.95 on the BSE.
Capacity expansion approved
The board has approved capacity expansion for industrial paints, powder coatings and industrial resins across three manufacturing facilities.
Industrial paint capacity will be expanded at the Sayakha, Bawal and Hosur plants at an investment of Rs 412 crore.
“In view of the estimated growth in automotive paint industry, capacity additions are being carried out,” the company said in an exchange filing.
The company will invest another Rs 189 crore to expand powder coating and industrial resin capacity at the Sayakha plant.
The projects will be funded through internal accruals and are expected to be completed in phases by the end of fiscal 2029.
European shares start August higher on US-Iran diplomacy hopes
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Tom Holland stars as Peter Parker, aka Spider-Man in Sony and Marvel’s “Spider-Man: Brand New Day.”
Sony
There’s a new king of the domestic box office.
Sony and Marvel’s “Spider-Man: Brand New Day” webbed up more than $360 million during its opening weekend in the U.S. and Canada, breaking the record for the highest-grossing debut of all time. The previous record was $357 million, set by “Avengers: Endgame” in 2019.
Globally, the latest Spider-Man installment tallied $932 million, shy of the $1.2 billion record still held by “Endgame.”
The Tom Holland-led “Brand New Day” kicked off with record-shattering Thursday preview sales and snared $169.3 million on Friday, including presales, and $101.5 million on Saturday. Sony had initially projected an $84 million Sunday, but moviegoers flocked to theaters, driving ticket sales to $88.7 million for the day.
The film’s opening weekend also marked the biggest opening weekend in Sony Pictures history and the biggest debut for the Spider-Man franchise.
The feat comes even as “Brand New Day” was boxed out of Imax screens, which were snapped up for Christopher Nolan’s and Universal’s “The Odyssey.” Rival premium large formats thrived, however, as Dolby Cinema, ScreenX and 4DX all reported record-breaking ticket sales over the weekend.
“Brand New Day” is on pace to be the fourth billion-dollar film of 2026, joining Pixar’s “Toy Story 5,” Lionsgate’s “Michael” and Universal and Illumination’s “The Super Mario Galaxy Movie.”
Wonder Man Showrunner Reveals Why Marvel Suddenly Canceled Season 2
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