Tory & Chris Burch — Fashion's Bitterest Business Divorce
He funded her brand. She built it into a $3 billion empire. Then he launched a knock-off and they went to war.
Key Facts
What Happened
Tory Burch launched her eponymous fashion brand in 2004 with backing from her then-husband Chris Burch, a venture capitalist. The brand exploded in popularity, growing into a $3.3 billion empire. But the couple divorced in 2006, leaving Chris with a 28.3% stake in Tory Burch LLC — and a shared business relationship that would prove far more contentious than the marriage.
The real war began in 2012 when Chris launched C. Wonder, a retail brand that many observers — including Tory herself — viewed as a direct knock-off of Tory Burch's aesthetic at lower price points. Chris sued first, alleging that Tory and her board were blocking his efforts to sell his stake. Tory countersued, claiming Chris had used his insider access as a paid consultant to steal trade secrets and design aesthetics for C. Wonder.
The lawsuits were settled on December 31, 2012. As part of the resolution, Chris sold approximately half of his 28.3% stake, reducing his ownership while allowing both sides to move forward. The company was valued at about $3.3 billion at the time, meaning Chris's remaining stake alone was worth hundreds of millions.
The Burch saga is a cautionary tale about what happens when divorcing spouses remain business partners. Chris's intimate knowledge of Tory's brand — gained during the marriage and reinforced by his post-divorce consultant role — gave him unique ability to compete. The resolution required not just legal settlement but a fundamental restructuring of the business relationship.
Legal Breakdown: How shared business ownership between ex-spouses creates ongoing conflict
Post-Divorce Business Entanglement
The Burch divorce left Chris as a major shareholder in his ex-wife's company. This arrangement — common when a business is a key marital asset — created years of friction because their interests as ex-spouses diverged while their interests as business partners remained linked.
Trade Secret Misappropriation
Tory's claim that Chris used insider knowledge to launch a competing brand raises trade secret issues. When an ex-spouse retains a consultancy role, the line between legitimate market knowledge and proprietary information becomes blurred.
Forced Buyout Dynamics
Minority shareholders in private companies often have limited options to sell. Chris's lawsuit about being blocked from selling his stake highlights the need for clear buyout provisions in any divorce settlement involving shared business ownership.
What This Means for Your Divorce
- →Leaving an ex-spouse as a major shareholder in your company creates an ongoing relationship that can become adversarial.
- →Divorce settlements involving business stakes should include clear buyout timelines, non-compete clauses, and information access restrictions.
- →If your ex retains a consultancy role in your business, define strict boundaries around what information they can access.
- →The best business divorce is a clean break — negotiate a full buyout if possible, even if it means paying a premium.
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This article is based on publicly available court records, news reports, and legal analysis. It is provided for educational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading this content.
Divorce laws vary by jurisdiction. Always consult a licensed attorney in your area before making legal decisions.