Cousins Danielle and Vicki Vlahos battle over $800k loans and fashion label

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Two cousins, Danielle and Vicki Vlahos, who founded the $7 million fashion label Portia & Scarlett, are embroiled in a legal battle over personal loans and the sale of their company.

The dispute, heard in the NSW Supreme Court this week, follows a breakdown in their relationship, which began when Vicki sought to sell the business in early 2023.

Danielle, a former head designer, is trying to recover a $170,000 loan she provided to help Vicki pay a divorce settlement, claiming it was never repaid.

In contrast, Vicki alleges she is owed $645,000 by Danielle, referencing an oral agreement for a home loan, which Danielle claims has already been repaid with interest.

The cousins founded fashion label Portia & Scarlett. Photo: portiaandscarlett.com.

The court is also deliberating on the cousins’ company loans, after a receiver sold off business assets, with $7 million in the account awaiting final disbursement.

The hearing revealed deep personal tensions, including allegations of verbal abuse between the cousins. Vicki argued that Danielle’s claims for repayment were part of a “double dipping” strategy, as funds were used to settle Vicki’s divorce.

Additionally, Vicki is seeking reimbursement for trade show expenses, unpaid annual leave, and accommodation services, which Danielle contests, calling the business arrangements informal.

The case, which continues before Justice Scott Nixon, highlights the personal and professional rifts that led to the collapse of their once-thriving fashion empire.

Source: News.

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