Bagologist-I think it had to do with the fact that she didn't want to pay that girl very much money. I think she was paying her a salary of like $200,000 and she wanted a larger cut of the profits. Tamara refused and I think she figured she could carry the brand on her own. This is also when they decided to start hiring spokesmodels for their shoes (ie Nicole Richie). I know the designer was way miffed that they were paying Nicole Richie millions to model the shoes, but paid her a paltry salary to design and produce them.
I don't follow shoemakers that closely, but there was an article in Vanity Fair. I love how Vanity Fair is always able to sensationalize any story as a great scandal.