Digital Brands Group receives default notice on $3.53 million convertible note
DBGI•DBGI•DBGI•DBGI•Digital Brands Group said Shakawe Capital issued a default notice on its $3.53 million unsecured convertible note, citing a missed $1 million payment and a registration filing deadline. Shakawe demanded immediate repayment at 120% of outstanding principal, accrued interest and other amounts owing; the company disputes certain assertions and is evaluating a negotiated resolution or extension.
Shakawe Capital issued the notice on October 29, 2026, alleging that Digital Brands Group missed a $1 million payment due October 23 and a registration statement filing deadline of August 7. Shakawe demanded immediate repayment at 120% of outstanding principal, accrued interest and other amounts owing, plus additional damages, and set default interest at 20% annually. It threatened legal proceedings unless it received an acceptable extension proposal by the end of October 29. The company disputes certain assertions and is evaluating a negotiated resolution or extension.
