Exclusive: C. Wonder raises $35 million

February 5, 2013, 12:46 AM UTC

FORTUNE — Women’s fashion retailer C. Wonder has raised $35 million in private equity funding, Fortune has learned.

The investment comes just weeks after C. Wonder founder Chris Burch reached a legal settlement with ex-wife Tory Burch, who runs her own eponymous retail brand (which the former couple launched together). Chris had sued Tory for allegedly interfering with his efforts to sell his stake in Tory Burch, while Tory’s counter-suit accused C. Wonder of stealing signature design features of Tory Burch products and stores.

On that latter point, here is what Tory Burch’s attorney Marc Wolinsky told Women’s Wear Daily at the time: “Tory Burch is saying it won’t let Christopher Burch sell out his interest and get hundreds of millions of dollars and continue to compete against the company… This guy ripped off Tory Burch. His product looks like our product, his stores look like our stores.”

As part of the settlement, Chris sold most (but not all) of his 28.3% stake in Tory Burch to private equity firms General Atlantic and BDT Capital Partners. No financial terms were disclosed, but some reports valued the entire stake at around $600 million. It’s unclear if the settlement also requires C. Wonder to make any changes to merchandise or decor.

MORE: Tory Burch talks about choosing great investors

As for the new C. Wonder financing, Chris Burch provided the following comment to Fortune:

“This investment underscores that C. Wonder is resonating not only with our customer but with the financial and retail community.  I am immensely proud of the work that Amy Shecter, President of C. Wonder, and her team have done in the last 16 months since we opened the first C. Wonder in SoHo in October 2011.”

C. Wonder declined to identify the lead investor or discuss valuation, although Fortune has heard that the latter is several hundred million dollars.

So it seems that all’s well that ends well. Well, at least for now…

UPDATE: WWD is now reporting Fidelity is the investor, and that the $35 million is in exchange for a 10% stake.

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