Nylon magazine co-founders Marvin and Jaclynn Jarrett are planning to sue after they had their magazine ripped away from them by Joe Mohen — an online entrepreneur who launched SpiralFrog — in a joint investment with Diversis Capital LLC and Backbone Capital Advisors LLC.
The husband-and-wife team launched the cutting-edge fashion monthly, which has had Jared Leto and Emma Stone on its cover, in 1999. Insiders say the Jarretts were never notified that their investment partner Donald Hellinger had sold 51 percent of the business, and argue the transaction is not legal. Sources say that on May 2, the Jarretts were told by friends that their company was sold to Mohen and his partners, and it was merging with the site FashionIndie.com.
The next day, the company’s accountant confirmed the merger was moving forward. Our sources say the Jarretts only learned from media reports that they were no longer editor-in-chief and publisher and were locked out of their office. A letter sent to Diversis and Backbone by the Jarretts’ attorney Mitchell C. Littman states, “The company was obligated to attempt to agree with [the Jarretts] on the terms and conditions with respect to any sale.”
A source close to the Jarretts said, “They want this resolved swiftly and are going to go full force with legal action to get their magazine back. They just want back the magazine they have spent almost two decades creating. This was handled so inappropriately.”
The Jarretts couldn’t be reached. A rep for Nylon’s new owners said: “We have no comment on any dispute that may exist among the shareholders of the seller…we are extremely enthusiastic about consummating the transaction and what the future holds.”