Tamara Mellon, the former chief creative officer of Jimmy Choo, has won a case against a trio of British investors who had backed her new fashion business, Tamara Mellon Brand (TMB). The co-founder of Carphone Warehouse, David Ross, Icap's boss Michael Spencer and Lord Marland, the former Tory trade minister, were among a group of investors who objected to Mellons' plans to take control of her new fashion venture under American bankruptcy protection laws. The men claimed that Mellon had spent profusely and taken £70,000 (€90,048.3-$101,268.4) worth of the firm's clothes and shoes for herself and her daughter, using TMB as a sort of cashpoint. All this had allegedly happened while the company in which they had invested millons of pounds was posting poor results. In turn, Mellon's lawyers accused the three investors of wasting the court's time with “petty squabbles” and “distasteful” attacks on her character, as reported by The Sunday Times.
Now a U.S. court in Delaware has approved the plans to restructure Mellon's business, Tamara Mellon Brand, which include a £7 million (€9.01m-$10.13m) investment from New Enterprise Associates, a venture capital firm, and £1.4 million (€1.80m-$2.03m) from Mellon herself, and Mellon can attempt to keep her venture afloat. In December, Mellon's namesake company had filed for U.S. bankruptcy protection under Chapter 11 - a standard corporate tool enabling companies to wipe out their debts and find a new start - while she looked for additional funding.
Mellon had forecast that her eponymous brand would post sales of £52.2 million (€67.2m-$75.5m) last year, but sales actually came in at £5.6 million (€7.21m-$8.10m). Since then, Mellon has found funding from her new partners: New Enterprise Associates. The new funds should enable Mellon's business to focus on selling directly to the consumer via online and brand-controlled stores.