Just over a fortnight since filing for bankruptcy, Jimmy Choo Co-founder Tamara Mellon will be able to save her namesake luxury footwear and accessories label with the $10m gifted to her by a US private equity firm.
According to The Sunday Times San Francisco-based NEA, which describes itself as a venture capitalist, will provide $10m of a $14m (£9.4m) cash injection — part of a reorganisation plan put forward under America’s Chapter 11 bankruptcy law.
Mellon will invest $2m herself while other existing, and new, investors will provide the remaining $2m.
Mellon has repeatedly criticised private equity firms, citing that they “throw you to the wolves” on exit.
Tamara Mellon the brand, which launched two years ago, filed for Chapter 11 protection in a Delaware court earlier this month following key shareholders’ refusal to provide further investment.
Investors included David Ross, who co-founded Carphone Warehouse, Index Ventures, the tech fund best known for backing LoveFilm, and King, the company behind the Candy Crush game.