Nylon Founders Suing Over FashionIndie Merger

Following the sale of both FashionIndie and Nylon earlier this month, which AdWeek has labelled "a match made in hipster heaven", a lawsuit is reportedly in the works. Nylon Holdings Inc. and online fashion magazine, FashionIndie, were bought bought up by a new venture lead by former Rolling Stone publisher Dana Fields and Election.com founder Joseph Mohen and backed by Diversis Capital LLC and Backbone Capital Advisors LLC. According to Page 6, Nylon co-founders Marvin and Jaclynn Jarret, who launched the mag in 1999, are planning to sue after they had their magazine "ripped away from them by Mohen." Page 6 writes

Insiders say the Jarretts were never notified that their investment partner Donald Hellinger had sold 51 percent of the business, and argue the transaction is not legal. Sources say that on May 2, the Jarretts were told by friends that their company was sold to Mohen, it was merging with FashionIndie [and] they were no longer editor-in-chief and publisher and were locked out of their office. A letter sent to Diversis and Backbone by the Jarretts’ attorney Mitchell C. Littman states, “The company was obligated to attempt to agree with [the Jarretts] on the terms and conditions with respect to any sale.” A source close to the Jarretts said, “They want this resolved swiftly and are going to go full force with legal action to get their magazine back. They just want back the magazine they have spent almost two decades creating. This was handled so inappropriately.”

Additionally, reps for the mag's new owners, however, have no comment on the drama, simply telling Page Six, "We have no comment on any dispute that may exist among the shareholders of the seller … We are extremely enthusiastic about consummating the transaction and what the future holds."

According to our sources, following the announcement on May 2nd that the yet-to-be-named venture had acquired both Nylon (the self-described "reigning authority on fashion, music and beauty for the modern and intelligent young woman") and the Beca Alexander-launched FashionIndie, Nylon employees were, in fact, locked out of the company's Soho-based office. Things have since gone back to normal, so to speak, but an array of both Nylon and FashionIndue employees are unsure of the status of their jobs. FashionIndie founders, Daniel Saynt and Beca Alexander, will reportedly not only stay on board, they will take on additional titles at Nylon.

More to come …