The chief clothing supplier of LuLaRoe is suing the firm for about $49 million via a lawsuit which claimed that the company which operates in multi-level marketing operations has not paid its bills for the past seven months.
In the lawsuit, the chief clothing supplier, Providence Industries stated that the company has reasons to believe the insolvency of LuLaRoe and it also accused the founders of the company, Mark and DeAnne Stidham for using “shell companies” so as to hide the assets of the company so as to fund the “lavish lifestyle” of theirs.
About 17 limited liability companies are identified by the lawsuit, which are stringed to Stidhams. These companies were created between July and December of 2017.
The claims of the lawsuit are that Stidhams have been using these companies so as to purchase private planes along with cars which have worth of at least $2.7 million and even properties having value of $7 million along with several other assets.
The lawsuit also stated that these limited liability companies of the Stidhams are a part of the “scheme” so as to delay as well as hinder and default the creditors.
According to the BusinessInsider, the lawsuit further claims that on confrontation by the representatives of Providence Industries on the 7th of September 2018 related to the due bills, Mark Stidham, the founder allegedly stated the he is not going to pay them a single dime unless so has been ordered by a judge and that DeAnne and himself will take out some two to three hundred million dollars to the Bahamas.
The representatives of LuLaRoe along with the founders Marks and DeAnne Stidham did not respond to the requests of the BusinessInsider about commenting of the matter.
Source: BusinessInsider, ConsultantInsider
