Saturday, November 18, 2017

Tamara Mellon saved from drowning

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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.