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J. Mendel confirmed owing thousands of dollars to Karla Otto

By Sara Ehlers

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Business

Public relations company Karla Otto recently just put J. Mendel under fire for thousands of dollars owed under their settlement agreement.

The two were previously in an agreement where Karla Otto was set to represent the luxury label at a monthly rate of 12,000 dollars. As reported by WWD, the two ended terms due to J. Mendel not paying its dues, totaling 110, 287 dollars by the time the partnership ended. As the label never paid its debt, Karla Otto decided to settle agreeing that a payment of 260,000 dollars. With the public relations work with J. Mendel, the brand's first couture show was put on in Paris in 2016, which cost 297, 131 euros, according to the publication.

J. Mendel was supposed to do its part by paying Karla Otto in monthly installments of 20,000 dollars according to the settlement reached in 2017. However, over time, Karla Otto only received four installments totaling 70,000 dollars instead of the total payment agreed on. It seems that after these installations were made, J. Mendel stopped paying altogether. The couture house has no made public statement on the matter.

Karla Otto goes to court over J. Mendel debt

Karla Otto has now taken a stand against the brand by going to a local New York Court. Earlier this week, according to WWD, the firm approached the court to ask for the full amount owed plus 14 percent interest as well as reimbursement for all legal fees. Currently, a representative from Karla Otto could not be reached for comment on the matter.

The international public relations company is known for is brand strategy in building and growing labels in the luxury fashion world. The company has a wide range of portfolio of clients including Marni, Tommy Hilfiger, Blumarine, Philipp Plein and more. With J. Mendel under the company's umbrella of brands, it seems fair to assume that Karla Otto helped to build exposure to the label during its time of representation. While this legal battle remains, it'll be interesting to see if J. Mendel ends up paying, or if there are some other financial struggles within the company.

Photo Source: Karla Otto / J. Mendel

J Mendel
Karla Otto