Tamara Mellon has filed for bankruptcy. WWD reports that New York-based Mellon has filed for Chapter 11 of the bankruptcy code, which means that she is entering a re-organization plan for her business. The 48-year-old launched her eponymous accessories label in 2013 after co-founding luxury shoe label Jimmy Choo. Her designs are stocked at Net-a-Porter.com and include ready-to-wear pieces as well as shoes and handbags.
But this type of bankruptcy doesn’t signal the end for Mellon; Chapter 11 is a very specific code used when a business is unable to pay its creditors. It is used as a form of bankruptcy protection, and can be applied to individuals as well as business. Rapper 50 Cent, real name Curtis Jackson, filed for Chapter 11 bankruptcy earlier this summer, enabling him to create a plan to pay his debts and how much of them he is able to pay.
London-born Mellon worked as accessories editor at British Vogue before setting up a business with bespoke shoe-maker Jimmy Choo in the mid-1990s. She helped grow the brand into a household name, giving it a presence in luxury boutiques around the world. Choo sold his share to a luxury holdings company in 2001 and the brand was subsequently acquired by several private equity firms. Mellon walked away with an £85m fortune in 2011.