The founders of The Daily Edited are locked in, they have 3,490 photos.
Two friends who founded an accessories empire are locked in a court battle over accusations company funds were used to fund lavish birthday celebrations and the purchase of luxury items.
Three years after meeting while working at a Perth law firm, a pair of friends created The Daily Edited and built it into a $25 million fashion powerhouse with stores in New York and Australia.
Ms Liu launched legal action against her business partner in the Supreme Court of New South Wales, claiming that she spent thousands of dollars of the business's money on herself in violation of her duties as a company director.
In a statement to Daily Mail Australia, Ms Tran said she isstrenuously defending the claims made against her and has filed a cross claim that raises a number of substantial issues against MsLiu.
The pair are the only directors and have an equal stake in the company, which is why Ms Liu requested the court's permission to take action against Ms Tran.
The Daily Edited was founded in 2014.Five years later, Ms Liu launched legal action in the Supreme Court of New South Wales over claims that Ms Tran used company money for her own benefit.
According to an affidavit provided to the court, Ms Tran took company money to spend on luxury items, birthday celebrations and to fix a leaking roof.She is strenuously defending the claims made against her.
Justice Black granted leave to bring the action after finding there were serious questions to be tried.
After imposing a minimum value of $500, Ms Liu agreed to reduce the number of transactions in dispute to 809 from 3,644 and to pay the legal costs of The Daily Edited if the court action was unsuccessful.
In her affidavit lodged with the court, Ms Liu claimed that Ms Tran spent more than $27,000 of company money for her 34th birthday celebrations, including on travel, alcohol, and event planning.
The company's money was taken by Ms Tran to pay for a leaking roof at her home and she failed to repay the amount despite attempts being made to negotiate a repayment plan.
Even if expensive luxury products were initially purchased for marketing purposes, they should still be in the company's possession or have been sold to recover money, according to an affidavit by Ms.Liu.
The expensive luxury items included designer clothes, handbags, jewellery, rugs and high-end makeup.
In her affidavit, Ms Liu claimed that there was no record of the company having received the proceeds of their sale.
She claimed that it was wrong and contrary to the director's duty to simply throw away or give away expensive luxury items like those the company has spent $200,000 to purchase.
The Daily Edited was founded by Ms Tran and Ms Liu after they worked together at a law firm in Perth.
Ms Tran had claimed in her affidavit expenses that they were used for marketing and event expenses of her other business.
Justice Black said that an investigation by a court-appointed expert into 454 transactions in dispute found that 338 were not proper expenses.
Justice Black said in his judgement that the expert had observed that a significant number of the relevant expenses were not proper expenses.
It is not clear if Ms Tran has reimbursed the amount of expenses she acknowledged were of a personal character.
The fact that a transaction is not documented or adequately documented doesn't necessarily mean that it's not for a proper corporate purpose, although it may involve a potential contravention of the obligations to maintain true and fair accounts.
"I am very excited about our upcoming product offerings, new stores and content for our valued customers," she said.
The case will return to court in May.Ms Tran has filed a defence and cross claim.
I have filed a cross claim that raises a number of substantial issues against Ms Liu and I am defending the claims against me.I don't intend to pursue those issues through the media.
We are continuing to work together for TDE.Since the beginning of the business, I have focused on growth, innovation, longevity, and having a great environment for our team members across Australia and the US.