The ripple effect of Lipman’s bankruptcy
The bankruptcy of a small New York ad agency has had a ripple effect across the fashion, banking and sports worlds that few could have imagined.
David Lipman’s high-fashion ad boutique and its parent company, Revolate — both now defunct — were backed by a firm that helped direct the investments of Rangers star Henrik Lunqvist and former Miami Dolphins standout Jason Taylor.
Former Rangers star Sean Avery was a top executive at the ad agency until he was let go in a round of lay-offs earlier this summer.
Lipman, who counted jeweler David Yurman and Stuart Weitzman as clients, also worked with high-profile models such as Karolina Kurkova and Kate Moss.
Lipman was acquired by Revolate in 2011. The Post has learned that former Barclays CEO Bob Diamond is among the biggest losers in the bankruptcy.
Diamond is thought to have invested as much as $1 million in the failed marketing-services entity about a year ago.
The agency left debts totaling $9 million, according to one source.
The list of burned investors includes Stacy Madison, the founder of Stacy’s Pita Chips, who invested alongside Cristina Carlino, founder of the Philosophy beauty brand.
Carlino is believed to have lost close to $500,000 on the venture.
Other investors are said to include Long Island-based GM Advisory Group, run by Frank Marzano.
Marzano joined the Revolate board and got to invest on behalf of the sports stars through the Lipman/Spellman connection, a source maintains.
Marzano didn’t return several calls for comment.
At the heart of the financial train wreck is a smooth-talking former Goldman Sachs executive, Andrew Spellman.
“Everything he touches turns into a mess,” said one executive. “He held various positions, but there was no meat to it.”
The 36-year-old son of the former Staples Chief Financial Officer Robert Spellman got his start as a vice president in the investment management division of Goldman Sachs. From there he joined Boston-based Fireman Capital Group, run by former Reebok CEO Paul Fireman.
The firm soured on Andrew Spellman and, sources said, it was happy to see him depart. A spokesman for Spellman denies that is the case.
Robert Spellman remains an operating partner there. Confidantes of the elder Spellman said he was mortified by the turn of events surrounding his son.
High-profile fashion PR executive, Hamilton South, a pal of both David Lipman and Andrew Spellman, is also an operating partner at Fireman.
Spellman, after leaving Fireman Capital, joined James Pallotta’s Raptor Group, occupying a slot as both managing director of Raptor Consumer Partners at the same time he was CEO of Lipman.
Those familiar with the agency said the financial problems grew along with profligate company spending on first-class flights and high living, not to mention a series of investments that didn’t generate enough revenue.
Revolate’s investments included: Lipman-nyc, ArchetypeMe, J Walk, Genetic Denim and talent agency, No. 14.
ArchetypeMe laid off 30 of its 40 staff members in the past few days.
Spellman officially left at the beginning of the year, although some say he had a continuing role in operations.
“David was denied access to financial information,” a source close to the Lipman camp said.
By summer, famed restructuring expert Gregory Rayburn stepped in. In late September, the high-fashion photographer, Lipman, led a tearful meeting telling staff of the agency closure.
At least one of the many investors is considering litigation, sources say.
Diamond did not return calls for comment.