Lularoe, once a buzzword in the fashion industry, has had a rollercoaster journey since its inception. Known for its vibrant patterns and unique leggings, the brand gained massive popularity, but it also found itself mired in controversy. In this article, we delve into the rise and fall of Lularoe.
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The Birth of Lularoe
Lularoe was founded in 2012 by DeAnne Stidham and her husband Mark Stidham. The company adopted a unique business model, selling clothing primarily through a network of independent consultants. These consultants, often referred to as “retailers,” would host in-home parties or sell products online, creating a sense of community and excitement around the brand.
The Lularoe Craze
One of Lularoe’s signature products was its leggings, which featured eye-catching prints and designs. These leggings, often described as “buttery soft,” became a sensation, and women across the United States clamored to own a pair. The brand’s success skyrocketed, with Lularoe generating billions of dollars in sales.
Controversies and Legal Battles
However, Lularoe’s meteoric rise was accompanied by a series of controversies. The most significant of these centered on its business practices. Many retailers claimed that they had been encouraged to invest significant sums of money to start their Lularoe businesses, only to face difficulties in selling the products.
Lularoe also faced legal challenges. In 2017, it settled a lawsuit for $4.75 million, which alleged that the company operated as a pyramid scheme. The lawsuit accused Lularoe of misrepresenting potential earnings to its consultants.
Quality Control Issues
Another major issue that tarnished the brand’s reputation was quality control. Some customers reported receiving defective or poor-quality products, leading to dissatisfaction and damage to the brand’s image.
The Downfall
The combination of legal troubles, dissatisfaction among retailers, and quality control issues took a toll on Lularoe’s popularity. The brand’s once-thriving consultant network began to shrink, and it faced a barrage of negative media coverage. By 2020, Lularoe had closed several of its corporate-owned distribution centers.
Is Lularoe Still In Business, 2023?
The answer to this question is a big yes. After going through the huge lawsuit, the brand has picked up from the broken pieces to be better than it ever was. From their instagram page, it is evident that they are still doing their business and hopefully would become one of the biggest brands.