On January 25, 2013, Mark and DeAnne applied for an LLC for LuLaRoe, and by August of that year, LuLaRoe had opened its first “home office” in Corona, consisting of DeAnne`s son Kenneth (VP of Sales), daughter Amelia (brand ambassador), Amelia`s husband Justin Lyon (Marketing Manager), and DeAnne`s son. Jordan (Head of Leadership and Cultural Development). Kenneth`s wife, Jill, is a speaker at official events. Jeff Thompson, Nicole`s husband, was vice president of finance before he and his wife launched their own MLM for children`s clothing, DotDotSmile, in 2017. Mark`s son, Austin, works in the analytics department, and his wife Lindsay sold clothes as a consultant, as did Michael`s wife, Ana. Many of DeAnne and Mark`s other relatives became consultants, and by the end of 2013, the company had about 100 consultants and was making a few million dollars in revenue, according to court records. Meanwhile, in June 2013, Dianne filed an LLC for her own multi-level marketing business called Honey and Lace, now called Piphany. In 2019, LuLaRoe sued Piphany and several ex-consultants, claiming Piphany had essentially stolen his advisers. (In February 2019, LuLaRoe announced that the two companies had reached a resolution through their attorneys.) Let`s say I go crazy and I decide to buy a bunch of inventory because I just know that the more I have, the more I can move, and the more I move, the more I`m going to earn, so I take out a loan and invest $3,500 more in inventory. That`s $18,500 for LuLaRoe! Let`s say my mother, sister-in-law and I bomb everyone and we don`t sell anything. That`s still close to $20,000 for LuLaRoe. On the same day in 2012, DeAnne`s daughter, Amelia Lyon, shared a photo of herself modeling three maxi skirts on Instagram. She wrote that her mother and aunt started a new “Maxirock business called Fitted.” DeAnne`s own Instagram posts at the time say that “Fitted” belonged to the two sisters and even wrote on business cards that “Fitted” was run by twins.
In digging deeper, I found that many consultants put an end to it as a result of this policy change. Since then, the company has also had legal issues with its main distributor (link at the end of this article). While these things don`t necessarily indicate a bankrupt business, many see them as a sign that the brand is about to disappear. And under a disclaimer: “*** For gross profits of retailers who made a transaction at any time in 2020, please refer to LuLaRoe`s 2020 tax return at: www.lularoe.com/lularoe-income-disclosure-statement***”. The biggest mistake of my life. Once you click the “Cancel my business” button, all those “lifelong friendships” and support are gone. I currently have about 45,000 wholesale warehouses. I don`t even want to sell it. It`s so much work for so little money, I prefer to “devalue” the brand by giving it away. Anyway, I actually own a lot of Lularoe.
I buy the sales, so I sent myself shirts for $5 and Amelias for $10, etc. In January 2014, DeAnne announced on her Facebook page “Dress Party” that she would be closing her business to focus full-time on LuLaRoe: “This business has evolved and you`re going to love love, love everything you see on our new website!!!.” I have an entrepreneurial spirit, I understand why they have changed. They could have been better with themselves and treated us as one. The Lularoe model is flawed from the start, I hate to admit it even after thinking about it: you now have a choice between prints or sizes and have no way to choose colors, patterns or themes to make your business a success; only use Facebook as an online sales vehicle. Come on, the red flags should now appear in spades; It`s like a Ponzi scheme where you exploit friends to become consultants, to increase your sponsors` cash flow, and so on. It`s a lot of work, these clothes don`t sell on their own, so be prepared to open long-awaited shipments to find that you have crappy prints that don`t want too many people to wear, take pictures and post, through accessories to display the goods and repeatedly send them to groups or face books. Even if you sell that you earn less than minimum wage? Then there are all the goodies that make it easier to sell. Think like franking machines, mail, lights and shelves. Come on, people are not repeating the mistakes of many of those who have easily seen this line of $$$$$ peddlers clothing. Then they confer the title of consultant????? What do you advise when you can even choose what to peddle? The lawsuit, filed in late 2019 on behalf of 190 consultants, Belinda Hibbard v.
LulaRoe LLC explained what they thought was LuLaRoe`s ideal consultant: “The defendants targeted women, stay-at-home mothers, spouses of serving military personnel, and other groups who had employability and access to credit or savings, but also generally a lack of formal business or financial education.” And here`s the fatal flaw in LuLaRoe`s business model – the supposed owner of the company (the consultant) can`t choose which specific products to buy for resale. Nevertheless, they must have stocks. Kind! Move smart, Linda! Especially after being postpartum with my second baby in as many years, I saw the appeal of LuLaRoe – it looked comfortable, loose where I wanted it, and even though I wasn`t a fan of a lot of prints, I could see how I combined some of them with solids. So when I set up my postpartum wardrobe, I wanted to buy t`s and leggings there because my boyfriend had a pair of them and they were really super sweet, but $200 would have bought me about 3 outfits and I just went to my regular stores and took all their leggings and tunics retail at a fraction of the cost of LuLaRoe. Those tunics and leggings were spit out, poop, pissed on them – you understand – I had to throw a lot of them a year later and I didn`t hit a whip because my investment was minimal. The MyDyer case and the ongoing class action lawsuit aren`t the only litigation going on against LuLaRoe. Another lawsuit, filed in early 2019 by Washington`s attorney general and LuLaRoe, which accuses Stidham and DeAnne`s son Jordan of running an “illegal Ponzi scheme,” is scheduled to go to trial in October 2020. As a former consultant in a May 2017 trial, Heinichen v. Lularoe, claimed, “[LuLaRoe] sells you at least $5,000 worth of clothing and tells you you think like a retailer.
If you submit them “as damages”, they will be rejected. If you file a complaint, ask the company for help, or go to your “upline” that makes 5% off everything you buy, they kick you out of the team`s FB page, shun them, tell you you`re just lazy, and feed your kids cereal so you can do the business. However, this account leaves out another player in the Maxirock company at the time: DeAnne`s twin sister, Dianne Ingram. Despite all the crazy claims about LuLaRoe circulating online as the company spirals – they brought consultants to Mexico to get weight loss surgery and get bribes from the doctor! The goods arrived moldy! Mark called the customers pigs! What is lost are the stories of families saying their savings were exhausted after buying LuLaRoe`s dream. Including families and individuals who filed for bankruptcy after serving as LuLaRoe consultants. And DeAnne and Mark`s own family, which one family member said was “completely broken” by their ruthless pursuit of success. LuLaRoe has billed itself as the ultimate family business, making the world easier for moms who want it all. But just like Katie`s Instagram photos, behind this shiny polish lies another, much more complicated story.