Nobody is surprised by this news. Not if you have been paying attention to the trials and travails of LulaRoe over the past 18 months.
Severe quality control issues (read: their signature leggings ripping upon first wear), several botched attempts at a rebate program, half the reps moving into ‘GOOB’ status on social media (going out of business), lawsuits everywhere, and the founders firmly in the ‘denial’phase of a company’s demise.
The picture that is being painted is one of closure, with a dash of legal ‘CYA’ by an executive team that wants to shield themselves from any personal financial liabilities if/when the company folds.
Every year these stories unfold in network marketing. The next hot MLM skyrockets and is all the rage, and a couple years later it folds. That isn’t to say that it is only an MLM phenomenon. It happens in every industry that has ever existed. But because of the high profile nature (via social media and wildfire word of mouth) of network marketing companies, the crash always seems to be a little bit louder than your local bakery.
And that is where LulaRoe is headed. A severe crash, followed by multiple class action lawsuits, until the company is a brief memory and cautionary tale in the MLM lexicon of shooting stars, turned eventual meteors.
Remember Vemma? Or how about Lia Sophia? Or any other fast-moving firms that ultimately moved too quickly without the right leadership.