Disclaimer: I am not a lawyer.
Recently, I came across a post on the Facebook Defective Group which mentioned the lawsuit between MyDyer and Lularoe.
Who is MyDyer?
While Lularoe was started when DeAnne made miniskirts for her daughter and friends, nowadays, Lularoe outsource to MyDyer. MyDyer is a Los Angeles apparel company that manufacture garments factories located in Asia and Central America.
What’s the Problem between Lularoe and MyDyer?
Among other things, MyDyer is accusing Lularoe of receiving inventory and profiting off of that received inventory but not paying MyDyer for the inventory.
The whole document is quite interesting to read (which I did and will do again while drinking a cup of hot lemon mint tea). There is accusation of Lularoe owners diverting money in order to live a lavish lifestyle. Page 13 of the document which can be found on Facebook (link at the bottom of this post) talks about how Mark Stidham, one of the owners of Lularoe, had allegedly verbally refused to pay his suppliers and even threaten to take his millions and his wife to the Bahamas. Though I am sure those who are pro-Lularoe will say the lawsuit is nothing.
If Lularoe is a billion dollar company and the owners, Mark and DeAnne Stidham were able to now live a life of luxury, why is it having trouble paying its suppliers? The mystery deepens.
Til next time,