Zac Posen is at the center of a lawsuit filed by former CFO Dominic Miachon-Hobson.
The now-shuttered fashion house was named as a defendant in a complaint over unpaid wages and unreimbursed expenses that was filed last month in the New York County Supreme Court.
In the suit dated Oct. 11 and first reported by Page Six, Miachon-Hobson said he had sought remuneration for the company’s business expenses, among them tax payments, utility bills and shipping fees — paid with his personal credit card. He alleged that the company failed to reimburse him for “recent business expenses” despite “repeated requests.”
The former Zac Posen exec said that he was owed a total of $167,177.51 in outstanding expenses. He added that the firm has not paid his wages since Aug. 30 — more than two months before its namesake designer announced that he was closing his business. In the court documents, Miachon-Hobson further stated he was suspended without pay on Sept. 27.
The lawsuit claims violations of New York’s Labor Law, breach of contract, unjust enrichment and “promissory estoppel” — a doctrine which states that a promise is enforceable by law, even if it is made without formal consideration.
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Miachon-Hobson said he has suffered “monetary damages in the amount of the unreimbursed expenses, damage to his credit and out-of-pocket medical expenses.” He is seeking damages in an amount that has yet to be determined as well as punitive damages and interest.
On Nov. 1, Posen shared that he would “cease business operations and carry out an orderly disposition of its assets.” The company was in the midst of a sale process that included Yucaipa Cos., the investment firm founded by Ron Burkle, seeking to sell its stake in the label.
In an Instagram post, the designer wrote, “I want to express my appreciation to our extraordinary team and for all those who have stood by me and the brand. I owe a great deal of gratitude for their unwavering support for and dedication to the company. I am grateful to the team who lent their incomparable talent and commitment along the way. I remain incredibly proud of what we created and hopeful for the future.”
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I want to express my appreciation to our extraordinary team and for all those who have stood by me and the brand. I owe a great deal of gratitude for their unwavering support for and dedication to the Company. I am grateful to the team who lent their incomparable talent and commitment along the way. I remain incredibly proud of what we created and hopeful for the future. Love ZP
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