LuLaRoe founder says the company is 'starting over' amid seller exodus and looming $63 million legal battle
Published: Jan 18, 2019

DeAnne Stidham

LuLaRoe CEO Mark Stidham and LuLaRoe founder and president DeAnne Stidham say the company is "being reinvented."

 YouTube/LuLaRoe

  • LuLaRoe's top executives said the multilevel-marketing company is "starting over" and "being reinvented."
  • "I love that everybody is saying 'LuLaRoe 2.0,'" LuLaRoe founder DeAnne Stidham said in a video the company shared online. "I think that's really what it is, because you know, we're starting over."
  • LuLaRoe's reinvention comes as it faces an exodus of sellers and a $63 million lawsuit from its chief supplier, Providence Industries.
  • The suit originally sought $49 million in damages. In an amended complaint filed in California state court on Monday, Providence raised the damages sought to $63 million.
  • LuLaRoe has denied the allegations in the lawsuit.

LuLaRoe's top executives said the company is "starting over" and "being reinvented" as it faces an exodus of sellers and a $63 million lawsuit from its chief supplier.

"I love that everybody is saying 'LuLaRoe 2.0,'" LuLaRoe founder and president DeAnne Stidham said in a video that LuLaRoe produced and shared online on Tuesday. "I think that's really what it is, because you know, we're starting over. And we like to do that because we want it fresh, and we want new items for everybody to get excited about."

Stidham's husband and LuLaRoe's CEO, Mark Stidham, also chimed in on "LuLaRoe 2.0," saying the company is being "reinvented" after learning about "what our retailers need from us and really narrowing in on the tools that we need to develop for them and the products that we need to develop."

"It's fresh, and it's kind of being reinvented, but it's being reinvented on the shoulders of those things that we have learned in the past," he said.

Read moreLuLaRoe faces a probe by the Washington State Attorney General's Office, sources say

In a separate video posted to DeAnne Stidham's Instagram page on Sunday, the LuLaRoe founder alluded to the company's problems with defective clothing.

"There was a glitch in the fabrics and the prints and everything, and it just took us a little bit to say, 'Hey, we gotta get busy and make it better … a better situation, a better life, a better experience for all of you," she said.

She encouraged people to continue selling LuLaRoe clothing, saying, "those of you that have stuck with us are going to reap the benefits 10 times or more."

Read moreLuLaRoe is facing mounting debt, layoffs, and an exodus of top sellers, and sources say the $2.3 billion legging empire could be imploding