Tamara Mellon has sought voluntary Chapter 11 bankruptcy protection for her namesake company.
In documents filed in bankruptcy court in Delaware on Wednesday, the former veteran Jimmy Choo designer, who launched her own label in late 2013, estimates her company’s assets at $1 million to $10 million — the same amount as its liabilities.
Tamara Mellon Brand LLC owes 100 to 199 creditors, the document states, with the largest debt — $197,528 — owed to Tak Fat Fashions Ltd. in Hong Kong. Italy-based creditor Calzaturificio Ilaria is owed $126,500, and CCM Srl in Italy and Sandbox Studios in New York are owed more than $100,000.
Mellon — who made headlines in June when her lawyer penned a letter alleging that Jimmy Choo had been preventing key suppliers from working with her namesake company — is among the LLC’s largest stakeholders. The others are Westerdale Inc., Wilton Place Inc. and Sandbridge Fund Acquisition LLC.
Mellon filed a reorganization plan along with the bankruptcy documents, which is subject to approval by the bankruptcy court.
Under the proposed restructuring plan, Mellon hopes to exit Chapter 11 in 60 days or less and form a new company, New TMB.
According to the filing, Mellon and Tamara Mellon LLC will transfer certain marks, domain names, and other intellectual property rights to New TMB in exchange for shares in new firm.
In the meantime, the company expects to continue to operate without layoffs.