The former chief financial officer at Zac Posen has reportedly filed a lawsuit against the designer over unpaid wages.
The 39-year-old made the decision to shutter his eponymous label and the House of Z on 1 November, sending shockwaves throughout the fashion industry.
Posen claimed the company was in the middle of a sale process, but a buyer could not be found in time, forcing himself and his partners to shut indefinitely.
Now, according to editors at the New York Post's Page Six, former chief financial officer Dominic Miachon-Hobson has named the fashion house - along with Posen's investor Ron Burkle and his company Yucaipa - in a legal complaint over alleged unpaid wages and expenses. He claims he hasn't been paid since the end of August.
In the suit filed at the New York County Supreme Court last month, Miachon-Hobson said he was owed a total of $167,177.51 (£130,287.31) in outstanding expenses and is seeking remunerations for business expenses paid with his personal credit card.
Lawyers for the former Zac Posen executive claim the company is in breach of contract and has violated labour laws.
Miachon-Hobson also said he suffered "monetary damages in the amount of the unreimbursed expenses, damage to his credit and out-of-pocket medical expenses."
He is seeking an unknown amount of damages, as well as punitive damages and interest.
The former executive told reporters at Page Six that he even paid Posen's employees out of his own pocket.
"I was told to clear everything up with no money coming in. Everybody was so committed to Zac and the company, many of us put our own money in. I allowed them to use my credit card to help the company get credit. I even paid the payroll taxes from my own account," he claimed.
Posen and his business partners are yet to respond to the lawsuit.
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