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Milly in discussions with potential investors

By Kristopher Fraser

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Business

Earlier this week, FashionUnited reported that Milly was not paying its bill to their PR firm, HL Group. Now, Milly is reportedly in talks to seeking an investor as the contemporary brand continues to struggle. The news was first reported by WWD. One of their potential investors appears to be Mudrick Capital Management, a debt specialist who took on stake in Proenza Schouler, so they are no stranger to the fashion industry.

The future of Milly is also up in the air as its founders, Michelle Smith and her husband Andrew Oshrin, are said to be in the middle of a divorce. Oshrin serves as brand president of the company, while Smith serves as creative director. It is likely Smith will want to continue the line, but unclear yet as to which way their divorce proceedings could go and who will get the company.

Speculation that Milly wasn't performing well financially began in February when the brand opted not stage a runway show or presentation during New York Fashion Week. The lawsuit filed by HL also says that the brand owes the PR firm 113,000 dollars in consulting and public relations fees. Milly still has an impressive list of stockists including Barneys New York, Bloomingdales, and Saks Fifth Avenue, so they are still of major interest to the contemporary fashion market. It is likely that they will be able to find an investor to inject some capital to turn the company around, but the future direction of the company seems dependent on the divorce between Smith and Oshrin, and who will be the one to lead the company into its next phase.

photo: via Milly.com
Michelle Smith
Milly
Mudrick Capital Management