DESIGNING A CHAPTER 11: Tamara Mellon got the green light for what looks to be a relatively quick trip through Chapter 11 from federal bankruptcy judge Kevin Gross in Delaware.

The designer, who filed a prepackaged bankruptcy last week, received the initial go-ahead from the court, which is set to hold a confirmation hearing for its reorganization plan on Jan. 15. Speed in bankruptcy is considered important by the company, which is seeking to reemerge with $12 million in support from venture capital bigwig New Enterprise Associates 15 LP and other lenders.

The brand received the OK to use its bank accounts, pay its nine employees, vendors and so on. Mellon herself is providing $2 million in debtor in possession financing to help fund the reorganization. Mellon, cofounder of Jimmy Choo, raised $24 million to launch the business in 2013 with an eye toward using a vertically integrated supply chain and a shop-now, wear-now philosophy to build its brand.

load comments
blog comments powered by Disqus