$2.8M Lawsuit Filed Against Tyra Banks For Backing Out Of Another Business Flop

Supermodel Tyra Banks confronts a $2.8 million breach of contract lawsuit from Washington, D.C. landlord Christopher Powell, who accuses her and partner Louis Bélanger-Martin of signing a 10-year lease for an ice cream shop then abandoning the property after two months without paying rent. The federal court filing, dated October 9, 2024, details a saga of ambitious plans, sudden shifts, and escalating disputes that expose tensions in celebrity-backed ventures.

The Dream That Fell Apart

Banks pitched Smize & Dream to Powell as far more than an ice cream outlet. Court documents describe her vision for the Eastern Market property as the flagship for a global chain aimed at underserved communities, integrated with youth education in science, sales, and hospitality via her nonprofit School of SMiZE. Powell collaborated on designs, viewing it as a major social enterprise commitment.

The Pivot to Sydney

Tensions arose when Powell learned Banks was using identical designs for a Smize & Dream shop in Sydney, Australia. This revelation fueled suspicions that the D.C. site was never a firm priority, casting doubt on the partners’ intentions despite their earlier assurances.

The Sudden Abandonment

In June 2024, just two months after signing the lease on April 17, Banks and Bélanger-Martin allegedly vacated the premises without notice or rent payments. Powell stated he had no prior indication of their desertion, having met them in March and received ongoing pledges of dedication to the D.C. flagship.

The Pop-Up That Added Insult

Compounding the issue, Banks launched a Smize & Dream pop-up at 2653 Connecticut Avenue in Woodley Park weeks later, only miles from Powell’s location. This suggested the duo had not forsaken the D.C. market but selected a different venue, leaving Powell’s space empty.

Threats and Escalation

Powell’s attempts at amicable resolution met resistance. He claims a letter from Banks and Bélanger-Martin leveled false accusations against him, his building, and the lease terms, threatening publicity if he sued. The letter further alleged they would refuse any court judgment by pinning liability on their assetless company.

Seeking Substantial Damages

Powell demands $2,831,331 in base damages, plus late fees, interest, extra rent, legal costs, and reletting expenses, potentially pushing the total well beyond $2.8 million. His attorney, Arziki Adamu, defended Powell’s record with high-profile clients and stressed the suit followed clear refusal to honor the contract.

A Pattern of Business Struggles

The case fits a broader narrative of Banks’ entrepreneurial setbacks beyond television. Past ventures include the 2022 ModelLand theme park in Santa Monica, which shuttered in 2023 amid criticism for lacking clear purpose after a decade of delays; Tyra Beauty, a 2014 multi-level marketing cosmetics line that ended direct sales in 2017 amid pyramid scheme claims; TypeF fashion site; and the short-lived FABLife show. These followed success from America’s Next Top Model, which peaked at $30 million annual earnings for Banks.

Recent shifts include her relocation to Sydney with Bélanger-Martin and son York, where the ornate Smize & Dream shop—with gilded archways and golden doors—opened in June 2024. In January 2025, Banks disclosed losing her Los Angeles home to the Palisades Fire while abroad. Her net worth stands at about $90 million from TV, real estate, and endorsements.

Defendants’ attorney Steven Willner moved to dismiss on November 11, 2024, citing lack of jurisdiction, no valid claim, prior termination notice, and denied space access—claims Powell counters with evidence of their pre-signing visits. Judge Amy Berman Jackson set Powell’s response deadline for December 16, 2024.

The dispute’s resolution could shape scrutiny on celebrity contract handling, testing commitments amid Banks’ pivot to Australia and testing her financial resilience despite substantial assets. Court proceedings may involve discovery and depositions, influencing future business dealings for high-profile figures.