Soulard clothing manufacturer sued for not paying partner
ST. LOUIS — Soulard clothing manufacturer Stars Design Group is being sued for not paying a partner $425,000.
World Fashions, a Kirkwood-based apparel company that operates globally in sourcing and sales, agreed to let Stars take one of its vendor deals to help pull the manufacturing company out of a financial slump, World Fashions said in a suit filed Friday.
The suit says World Fashions' owner Jeff Back began working for Stars in 2011. In 2012, World Fashions lined up a deal where the company would buy discount items from another company to sell to a fourth.
The deal would generate over $2 million in revenue at a 20% gross profit margin, and World Fashions would see a profit of $425,000. After Stars owner and CEO Bret Schnitker told Back that the company was financially struggling, Back agreed to allow Stars Design Group to take the deal instead of World Fashions.
Schnitker promised to repay World Fashions the profit made from the deal, which ended up being the anticipated $425,000, according to the suit.
In May 2023, Back resigned from Stars. In his farewell to Back, Schnitker acknowledged that he still owed Back money. But, in an email sent a few days later, Schnitker wrote to Back that he was "not sure there will be lump sum cash available any time soon" and they could work out "some timed payments to at least get the flow started" when Back asked for a one-time amount.
Schnitker cited the uncertainty of larger clients, the requirement of the bank after this year's loss and the end of the year looking light in his email.
"If roles were reversed, I wouldn't certainly press you, I would care and help stabilize your situation, but that's decisions we all must make," another Schnitker email reads, according to court documents.
World Fashions is suing for breach of contract, unjust enrichment and to force Schnitker to abide by his promise.
Stars Design Group is headquartered in the city's Soulard neighborhood at 1301 Gravois Avenue. The manufacturer did not immediately return a call seeking comment.
Retail Reporter
