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Top fashion designer Trelise Cooper has been ordered to cough up nearly $200,000 to a disgruntled former supplier - or face the prospect of having her multi-million-dollar company wound up.
The High Court order is one of several business-related issues plaguing New Zealand's First Lady of fashion and her $20 million clothing company.
Cooper will file an appeal against the judgment this week, but in the meantime she's been given a deadline of August 1 to pay $184,877 to Cooper Watkinson Textiles Ltd, a company formerly co-owned by her husband Jack.
The dispute arose over fabric supplied by Cooper Watkinson to the high-profile designer.
Trelise Cooper claimed the material was "shoddy" and unsuitable for the garments that had been produced. The High Court did not agree, ruling that while the fabric supplied by Cooper Watkinson may have been unsuitable it was "not arguable that the fabric was of unmerchantable quality". The judgment said if Cooper did not pay by August 1, the firm could apply to put Trelise Cooper Ltd into liquidation.
Trelise Cooper rejects the judgment and has retaliated by filing a counter-claim for $293,000.
Looming large in the background is a separate lawsuit by Jack Cooper against his former business partner Paul Watkinson.
The pair had been in business for 16 years, but fell out two years ago when Cooper retired and Watkinson acquired his 50 per cent shareholding in the company. Jack Cooper claims Watkinson owes him $1m. The case is scheduled to be heard in court in December.
Watkinson has filed a counter action against Jack Cooper for breach of fiduciary duty. He said he just wanted Trelise Cooper to accept the High Court decision and pay him what she owed.
Watkinson told the Herald on Sunday Cooper Watkinson was not responsible for "poor choices" made by Trelise Cooper. "This is an important decision for the industry because it reminds manufacturers that they are responsible for their styling decisions," Watkinson said.
