Tory Burch, Husband Settle Legal Dispute
The designer battled with her ex over similarities between her label and his store C. Wonder.
Tory Burch has settled her legal dispute against ex-husband Chris Burch.
The New York Times reports that the preppy clothing designer, whose upscale label nets near $800 million in annual sales, said Tuesday night that the two have agreed to settle their pending legal claims against one another. She also announced that the private equity firms BDT Capital Partners and General Atlantic would be taking minority stakes in her global fashion empire.
The company is pegged to be valued at between $2 billion and $2.5 billion, according to The Wall Street Journal, citing a source as saying that BDT Capital and General Atlantic were buying out the majority of Chris Burch's 28 percent stake (the value of which was not released).
Tory Burch, CEO and primary designer, has a 28 percent stake in the business. In 2009, the Mexico-based private equity firm Tresalia Capital acquired a minority stake for an unspecified amount.
The Burches launched dueling lawsuits this fall. Chris Burch, a venture capitalist and owner of the rival but lower-priced preppy brand C. Wonder, sued his ex-wife in October, alleging she and members of her board were hindering his efforts to sell his stake in Tory Burch LLC.
The next month, Tory Burch shot back with a suit of her own, countering that he -- a paid consultant to the brand -- used his special access to start C.Wonder, which she criticized as a "knock-off" with a similar design aesthetic.
The exes divorced in 2006, two years after co-founding the Tory Burch label. They have six children together: three sons from their marriage and three daughters from Chris Burch's first marriage.