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

Administrator Alice Fay Ruhe of The Ruhe Group was appointed this week to oversee Congo Brands Australia, with the first creditors meeting scheduled to be held next Friday.

Congo Brands Australia is the local business behind the influencer-led brands such as Logan Paul and KSI’s Prime and Lunchily, which was jointly founded with Mr Beast.

Launched in 2022, Prime quickly became hugely popular among Australian schoolchildren with intense hype drive by Logan Paul and KSI — two well-known social media influencers.

The viral drinks sparked a schoolyard reselling frenzy.

But in the company’s last financial report lodged with the Australian Securities and Investments Commission in September last year, Congo Brands Australia reported its sales had halved from the previous year to $14.5m from $31m.

The Melbourne-based company suffered a net loss of $1.42m in the financial year 2024, with $7.92m in debts and only $84,855 in the bank.

Between 2023 and 2024, Congo Brands Australia also dropped its inventory holdings from $28.9m to $1.7m, including a $4.57m writedown of stock.

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

It states the Australian-arm is reliant on the Kentucky-based global holding company to meet its liabilities, adding Congo Brands Australia has received a “commitment to support the company for the foreseeable future”.

The appointment of administrators comes as packaging company Orora Group filed a lawsuit in the Federal Court to wind up Congo Brands Australia in June.

No details of the case are publicly available however wind up applications are usually brought by creditors seeking to force a company into liquidation due to outstanding debts.

A hearing has been scheduled for the Federal Court case on July 31.