PSK Collective’s lawsuit against Kohl’s, filed in federal court in Wisconsin in August 2025, accuses the retailer of accepting and selling roughly $8 million worth of activewear without paying for it. The size-inclusive brand, founded by World Rugby Hall of Famer Phaidra Knight, is suing for breach of contract, theft by fraud, fraud in the inducement, and conversion, and it is asking for compensatory damages, treble damages under Wisconsin’s civil theft statute, and attorney fees. Kohl’s filed its answer to the complaint in January 2026, and the case is now in discovery.
The Deal Behind the Lawsuit
Knight launched PSK Collective in 2020 in partnership with The Powell Companies Real. The line focuses on performance and athleisure apparel in sizes XS to 3XL, and the brand donates 15 percent of net profits to the Women’s Sports Foundation.1WWD. PSK Collective Heading to Kohls.com for Exclusive Collection
In May 2021, PSK launched an exclusive collection on Kohls.com, starting with around 35 pieces priced between $39 and $69.1WWD. PSK Collective Heading to Kohls.com for Exclusive Collection According to the complaint, Kohl’s issued about 600 purchase orders between 2021 and 2022. PSK sourced more than 600,000 clothing units from vendors and factories to fulfill them and submitted roughly 1,500 invoices for merchandise delivered between April 2021 and September 2022.2SGB Media. Activewear Firm Sues Kohl’s for $8M in Unpaid Invoices PSK says roughly $7.8 million of those invoices went unpaid.
What PSK Is Claiming
The complaint was filed on August 13, 2025, in the U.S. District Court for the Eastern District of Wisconsin as case number 2:25-cv-01208-JPS. PSK, based in New York, is suing Kohl’s Corporation, headquartered in Wisconsin, under diversity jurisdiction.3WPR. PSK Collective LLC v. Kohl’s Corporation, Complaint
PSK brings four causes of action:
- Breach of contract, based on Kohl’s alleged failure to pay for merchandise delivered under the vendor agreement, leaving about $7.8 million in invoices outstanding.
- Statutory misrepresentation and theft by fraud under Wisconsin Statutes §§ 895.446 and 943.20, alleging Kohl’s falsely represented from the start that it would pay when it never intended to.
- Intentional misrepresentation and fraud in the inducement, alleging Kohl’s used “empty promises and never-ending excuses” to keep PSK filling purchase orders.
- Conversion, alleging Kohl’s wrongfully kept and sold clothing that belonged to PSK.3WPR. PSK Collective LLC v. Kohl’s Corporation, Complaint
When PSK pushed for payment, according to the complaint, Kohl’s employees pointed to “internal logistical and record-keeping problems” and offered shifting excuses over more than two years.2SGB Media. Activewear Firm Sues Kohl’s for $8M in Unpaid Invoices PSK alleges Kohl’s earned about $17 million in profit selling the clothing it never paid for.4WPR. Lawsuit: Kohl’s PSK Collective $8 Million Worth of Clothing
What PSK Wants
On the contract count, PSK seeks compensatory damages for the roughly $8 million in unpaid merchandise, plus consequential damages. On the fraud-in-the-inducement count, it asks for punitive damages and rescission of the vendor agreement. The conversion count seeks exemplary damages and attorney fees.3WPR. PSK Collective LLC v. Kohl’s Corporation, Complaint
The theft-by-fraud count carries the largest potential exposure. Wisconsin’s civil theft statute lets a prevailing plaintiff recover up to three times actual damages, along with attorney fees and investigation costs, without any additional showing beyond the underlying violation.5Wisconsin State Legislature. Wis. Stat. § 895.446 – Civil Liability for Theft PSK asks for those treble damages in its complaint. Applied to $7.8 million in unpaid invoices, the statutory theft claim alone could put more than $23 million on the table before fees and costs. PSK has requested a jury trial.
Proving Theft by Fraud in Wisconsin
Wisconsin’s civil theft framework does not require a criminal conviction. A plaintiff proves the claim by a preponderance of the evidence rather than beyond a reasonable doubt.5Wisconsin State Legislature. Wis. Stat. § 895.446 – Civil Liability for Theft The underlying criminal provision, § 943.20(1)(d), defines theft by fraud as obtaining property by intentionally deceiving someone with a false representation the defendant knew was false, made with intent to defraud. Under Wisconsin case law, a “false representation” can include a promise made with no intention of keeping it.6Wisconsin State Legislature. Wis. Stat. § 943.20 – Theft
PSK’s theory is that Kohl’s never intended to pay when it signed the vendor agreement and started issuing purchase orders. That is a demanding showing. Proving what someone was thinking when they made a promise usually requires circumstantial evidence: patterns of conduct, internal communications, financial records. Whether PSK can meet that burden will likely decide the case.
Where the Case Stands
The case is assigned to U.S. District Judge J.P. Stadtmueller. Right after the complaint was filed, Judge Stadtmueller ordered the parties to confer “forthwith” about settlement, encouraged them to use a magistrate judge or third-party mediator, and directed plaintiff’s counsel to file an interim settlement report once the initial scheduling order was in place. The order did not pause any litigation deadlines.7WPR. PSK Collective v. Kohl’s Corporation, Court Order on Settlement
Kohl’s filed motions to dismiss in October and December 2025, then filed its answer to the complaint on January 20, 2026.8CourtListener. PSK Collective LLC v. Kohl’s Corporation, Docket With the answer on file, the case has moved past the threshold-motions phase into discovery and pretrial proceedings. No trial date has been publicly reported as of mid-2026.
PSK Collective is still in business. The brand continues to sell wholesale through the Faire marketplace and maintains its Women’s Sports Foundation donation commitment.9Faire. PSK Collective on Faire
Kohl’s and Its Vendors
PSK’s case is not the first time a vendor has accused Kohl’s of nonpayment. In 2008, a federal jury in Manhattan ordered Kohl’s to pay $1.4 million to Fu Da International, a New York athleticwear manufacturer, after finding that Kohl’s had improperly deducted money from the vendor’s invoices and stopped paying when the vendor objected.10WWD. Kohl’s Told to Pay $1.4M in Chargeback Suit
The PSK complaint also arrived at a difficult moment for the retailer. Kohl’s full-year net sales fell 4 percent to $14.8 billion in fiscal 2025, and comparable sales dropped 3.1 percent.11Retail Dive. Kohl’s Rules Out Major Store Closures After Disappointing Q4 Less than two weeks after PSK filed suit, Bloomberg reported that Kohl’s had been asking some vendors for extended payment terms to manage working capital during its turnaround.12Bloomberg. Kohl’s Seeks More Time to Pay Vendors Amid Turnaround Effort
Financially, the retailer remains a large operation. As of the quarter ending May 2026, Kohl’s reported $429 million in cash, no borrowings on its revolving credit facility, and roughly $1.2 billion in trailing 12-month adjusted EBITDA.13Stock Titan. Kohl’s Corp Reports Q1 Fiscal 2026 Financial Results An $8 million judgment, or even a treble-damages award, would not put the company at risk. Whether PSK can unlock those larger damages will turn on what the discovery record shows about Kohl’s intent at the time it placed the orders.