The firm, known for its bangle bracelets and owned by multimillionaire Carolyn Rafaelian, says Bank of America, one of its lenders, discriminated against the company due to the fact that top executives are women.
, alleges in a lawsuit that Bank of America, one of its lenders, is violating federal law by engaging in gender discrimination against the women-led company.
“For more than six months now, Bank of America has been both driving Alex and Ani towards bankruptcy and milking it for literally tens of millions of dollars in fees,” the lawsuit reads. “The endgame is clear: Bank of America wants the women out of power at Alex and Ani. It wants to bring back the good old days, when a male Alex and Ani CFO let Bank of America charge whatever it wanted for BofA’s putative ‘services.
The suit also puts forth an additional theory for its financial troubles that feels like it was cooked up by a conspiracy theorist: Warren Buffett, whose Berkshire Hathaway is the largest shareholder in Bank of America, allegedly invested, the complaint says, in a Chinese jewelry company that makes Alex and Ani knockoffs. Warren Buffett could not be reached for comment at press time.
In December 2018, Bank of America, which serves as the administrative agent for the group of seven banks that provides loans to Ani and Alex, sent the company a letter to inform it that it defaulted on its loan. By January 2019, Bank of America sent another letter outlining how it was hiking interest rates, ceasing its revolver credit line, and requiring that Alex and Ani hire outside consultants to help restructure the company.
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