A rift between two Sydney cousins behind the glamorous Portia & Scarlett label has erupted again in the NSW Supreme Court, with one now cleared to pursue fresh claims over the collapse of a multimillion-dollar business sale – and the other ordered to foot the legal bill after failing to stop it.
The dispute centres on Danielle and Vicki Vlahos, who co-founded bridal fashion empire Love D&V XOXO and served as joint directors of the company.
The pair - who were once as close as sisters - launched the business in 2010, opening their first boutique, The Doll House, at Top Ryde Shopping Centre before expanding with three more stores.
They later founded formalwear label Portia & Scarlett after spotting what they described as a gap in the market for glamorous occasionwear.
By 2023, the cousins were in negotiations to sell the thriving business to American giant Allure Bridals in a deal worth an eye-watering $22million upfront, plus a further $2million to $3million for inventory and additional payments.
But the lucrative sale unravelled amid what the court described as 'an irretrievable breakdown in the cousins' relationship'.
The once-close business partners became embroiled in a bitter falling out during 2023, with court evidence suggesting Danielle pulled the pin on negotiations with Allure Bridals.
Vicki then launched urgent Supreme Court proceedings, seeking to wind up the company on the basis it was no longer workable.
Cousins Danielle and Vicki Vlahos ran a thriving fashion business until things turned ugly
Isaac Chami (pictured) was previously married to Vicki. He is now seemingly in a relationship with her cousin Danielle, according to what was said in the NSW Supreme Court
Before the matter could proceed to a final hearing, the pair struck a compromise and agreed to appoint a receiver and manager to sell the business and finalise the company's affairs.
The receiver ultimately sold the company to Allure Bridals in December 2023 for $12.1million - almost half the upfront figure contemplated under the earlier proposed deal.
That cut-price sale is now at the centre of a fresh courtroom showdown - and has once again aired the family's dirty laundry in open court.
In one extraordinary claim aired before the court last year, Vicki alleged Danielle is now romantically involved with her ex-husband, Isaac Chami.
'She went on a honeymoon with my ex-husband, yes,' Vicki told the NSW Supreme Court.
'I think they're engaged … it was like a pre-honeymoon.'
In September last year, Vicki sought leave to file a new statement of claim accusing Danielle of 'oppressive conduct' and other alleged wrongdoing, claiming her cousin's actions caused the business to miss out on far more lucrative commercial opportunities.
She is seeking relief under the Corporations Act, as well as 'equitable' compensation.
Danielle fought the move, arguing the fresh claims amounted to an abuse of process and should have been raised during the original winding-up proceedings in 2023.
But in a detailed judgment, the court rejected that argument, finding there was no abuse of process and ruling the original proceedings had been launched under considerable commercial urgency to break a management deadlock and preserve the possibility of a sale.
The cousins were once so close that their bond was more like that of sisters
Vicki and Danielle walk the runway for Portia & Scarlett during New York Fashion Week in 2019
They founded formalwear label Portia & Scarlett after spotting what they described as a gap in the market for glamorous occasionwear
Vicki has now been granted leave to formally pursue the claim, with Danielle ordered to pay her legal costs after unsuccessfully arguing the proceedings were an abuse of process.
The ruling means the bitter legal war between the cousins is far from over.
And the court battle, which is likely to drag on for some time, has already exposed a tangled web of informal business dealings, disputed loans and deeply personal grievances.
Vicki claims she is owed $645,000 under an alleged oral home loan agreement that helped Danielle purchase a property in Gladesville - a claim Danielle insists has been 'more than repaid'.
Danielle claims she repaid $741,903 through five separate payments and says Vicki previously acknowledged the debt had been settled in a WhatsApp message.
The pair are also locked in disputes over hundreds of thousands of dollars in trade show expenses, unpaid annual leave entitlements and Los Angeles accommodation costs.
The court has further been asked to determine how much each cousin owes under their respective company loan accounts.
A court-appointed receiver has already been instructed to sell off approximately $7million in company assets once the financial accounting between the pair is finally resolved.