LuLaRoe's chief clothing supplier wakes the company for nearly $ 49 million in a trial claiming that several levels of…
LuLaRoe’s chief clothing supplier wakes the company for nearly $ 49 million in a trial claiming that several levels of the marketing company have failed to pay their bills for seven months.
Providence Industries said in the suit that there is reason to believe that LuLaRoe is insolvent and accused the company’s founder Mark and DeAnne Stidham to hide assets in “shell” companies to finance their “lively lifestyle“.
The trial filed in a superior court in California on Thursday identifies 17 limited liability companies linked to Stidhams created between July and December 2017. The deck claims that Stidhams has used them to buy cars worth at least $ 2.7 million , real estate over $ 7 million, private aircraft and other assets.
The package said companies are part of a “system” to “prevent, delay and deceive creditors”.
Read more: LuLaRoe is facing assembly debt, redundancies and an abundance of top sellers. Sources say $ 2.3 billion could be imploding
The deck also claims that when representatives of the Providence Industries confronted Mark Stidham in September 7, 201
8 on expired advances, Stidham said: “Look guys, I will not pay you with you unless a judge asks me to pay it and DeAnne and I will take our two to three hundred million dollars to the Bahamas and f *** everything. ”
LuLaRoe representatives, including DeAnne and Mark Stidham did not respond immediately to emails that requested comments.
The suit argued LuLaRoe has additional debts, including $ 1 million to UPS and more than $ 3.1 million to other manufacturers.
UPS did not respond immediately to a request for comment.
Business Insider reported last week that LuLaRoe is facing assembly debt, redundancies and an abundance of top sellers. The company has lost more than a third of its top artists, which generate the most revenue for the company since July, according to data reviewed by Business Insider.
At the same time, hundreds of LuLaRoe vendors – who buy the company’s clothing at wholesale prices, then turn and sell it to customers at a glance – have said that they have been waiting for more than a year for reimbursement checks worth thousands of dollars.
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