After years of legal trouble including multiple lawsuits from former distributors, LuLaRoe will lay off all of its Corona, California warehouse workers.
It’s been a rough few years for LuLaRoe, the direct sales company known for signing up droves of women to sell first patterned leggings, and later, other types of clothes. After legal and financial trouble and a number of lawsuits, the company is closing its Corona, California, distribution center and announced that all 167 employees there will be laid off just five days before Christmas.
“Understanding the significant impact this decision would have in the lives of so many families and the local community—this decision was not made lightly; and was a sole effort to meet the immediate and long term business and operational demands needed to continue pioneering the social retail industry,” a LuLaRoe spokesperson, adding that the company is helping connect its employees with staffing agencies, “knowing they will continue to succeed and shine on the road ahead.
This news comes after LuLaRoe has had a tough few years, both legally and financially. After initial booming success in sales, the multi-level-marketing structure the company uses started to unravel, leaving dejected consultants in its wake who, claiming the company had roped them into what amounted to nothing more than a “pyramid scheme.
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