Everyone Wants to Know if LulaRoe Is Still in Business After Watching ‘LulaRich'
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At one point, LulaRoe was everywhere. Then, just a few years after her leggings, dresses, and other brightly colored clothing hit social media, the company got into controversy with dozens of former consultants, employees, and suppliers (including across Washington state) filing lawsuits against them, citing quality control issues , unfair refund policies, fraudulent practices, and other concerns.
The downfall of LulaRoe is the focus of the new Amazon documentation LulaRich. To kick off the four-part series, LulaRoe founders DeAnne and Mark Stidham paint a pretty picture of their business: DeAnne, a "struggling mother" of 14, sewed a skirt for her daughter and dreamed of a plan to sell her creations on a larger scale . Over time, they recruited a team of retailers (also called consultants or distributors) to help sell their designs. Then, within four years, the company topped $ 1 billion in sales and employed more than 80,000 consultants.
As the episodes play out, we get a whole different side of the story - one told by the former consultants and staff who set out the pressures, demands, and harsh realities that came with working for LulaRoe. A former counselor revealed that after sending moldy, torn clothing, her once thriving business stalled, forcing her to file for bankruptcy and even sell her house and two cars, one of which had a license plate that read “LulaRoe3 . Former employee Derryl Trujillo admitted that when the company abruptly ended its refund policy, he concluded that his work was not serving customers; it was only serving the company's founders.
Photo credit: Amazon Prime Video
Even when interviewed, Mark and DeAnne continue to stand behind their actions, denying that they ever created a pyramid scheme - intentionally or otherwise. But throughout the documentary series they also speak about the company in the present tense, which leads many viewers to wonder if LulaRoe is still in business amid the multi-million dollar lawsuits and workplace scandals. The short answer: yes, LulaRoe will still be around in 2021.
If you take a quick look at their social media accounts and website, everything seems to be moving on normally. Her Instagram page is full of smiling retailers, fun patterns, and stories of her accomplishments, like the 2020 LuLaRoe cruise, aptly named D.R.E.A.M. Trip. Her website makes her mission clear to every visitor: "To give people the opportunity to create freedom by selling comfortable, affordable and stylish clothes."
Even after LulaRoe settled a major lawsuit with Washington State by agreeing to pay a fine of $ 4.75 million, LulaRoe still has dozens of unsolved lawsuits against her. Because of this, it is not known how well the business is really doing right now. In a recent Instagram post, LulaRoe said they have 17,000 active retailers, a far cry from the 80,000 in 2017. Of those retailers, the income statement shows that about half have less than $ 5,000 in product sales and bonuses (now named the “Executive Compensation Plan”).
The most noticeable difference between then and now: In LulaRich, former retailers report that the start-up costs for new retailers ranged from $ 5,000 to $ 10,000, which resulted in many women taking out loans (even selling their breast milk) to shop. Today it costs $ 499 to become a member - but just like any other multilevel marketing company, it still comes with the same risk.
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