Tamara Mellon files for voluntary bankruptcy
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Business
London - Tamara Mellon, former co-founder of iconic footwear label Jimmy Choo, has filed for voluntary Chapter 11 bankruptcy protection to protect her current eponymous ready-to-wear and footwear brand from creditors.
Mellon, who launched her own label through her firm Tamara Mellon LLC in November 2013, filed the claim late Wednesday night in Delaware. The filing stated that the company hold assets of 1 million US dollars to 10 million US dollars but owes between 100 to 199 creditors 1 million US dollars to 10 million US dollars. The biggest creditors demanding payment include Hong Kong based garment manufacturer Tak Fat Fashion, which is owed 197,528 US dollars, and Italian footwear manufacturer Calzaturificio Ilaria, owed 126,500 US dollars according to WWD.
Tamara Mellon files for Chapter 11 bankruptcy protection
However, the British entrepreneur, aims to exit Chapter 11 within 60 days through the reorganization plan filed with the pre-packaged bankruptcy and form a new company, New TMB. The new firm will own "certain marks, domain names and intellectual property rights" previously held by Tamara Mellon LLC. The reorganization plans, which is pending approval from the bankruptcy court, means Mellon can continue to trade during the next 60 days without making any staff redundant.
"We will use this brief period of reorganization so we can position ourselves to take advantage of our new growth strategy and ensure the long term vibrancy of our brand," Mellon said in a statement. "We expect that we will emerge from this stronger than ever in 60 days or less, and all of us at Tamara Mellon look forward to pursuing our passion long into the future."
The bankruptcy announcement in the middle of a line of pop-ups for Mellon's brand, with the latest pop-up shops opening earlier this week at the W Hotel South Beach, in Miami.