LuLaRoe supplier demands immediate seizure of $34 million of assets after the CEO’s alleged threats to ‘jump ship’ with its riches


lularoe

LuLaRoe’s chief clothing supplier, Providence Industries, has demanded that a court immediately seize nearly $34 million in assets from the company.
The demand, made in court filings on Tuesday, claimed LuLaRoe CEO Mark Stidham is a flight risk due to his access to a private jet and his alleged threats to “jump ship” with the company’s riches.
The filings come after Providence Industries sued LuLaRoe last week for nearly $49 million in a lawsuit claiming the multi-level marketing company has failed to pay its bills for seven months.
A sworn statement from LuLaRoe’s head designer of five years, Patrick Winget, claimed that Stidham has made several alleged threats to flee with the company’s money.
LuLaRoe did not immediately respond to a request for comment on the filing.

A LuLaRoe supplier has demanded that a court immediately seize nearly $34 million from the multi-level marketing company, claiming its CEO is a flight risk because of his access to a private jet and his alleged threats to “jump ship” with the company’s riches.

The supplier, Providence Industries, filed the demand on Tuesday in California state court, along with a number of sworn statements by key executives from both parties. A hearing on the matter is scheduled for Wednesday.

“These are not empty threats,” one of the filings states. “Because of the close-knit and largely family-nature of the … business, Mr. and Mrs. Stidham will be able to immediately abscond with all of the cash assets… (as he has threatened to do), particularly because they have ready access to a private jet which they may use on a moment’s notice.”

The filings come after Providence Industries sued LuLaRoe last week for nearly $49 million in a lawsuit claiming the company has failed to pay its bills for seven months.

Read more: LuLaRoe supplier sues for $49 million and accuses the company’s founders of hiding assets in ‘shell’ companies

LuLaRoe did not immediately respond to a request for comment on the latest developments in the case. In a previous statement on the lawsuit sent to Business Insider, LuLaRoe said, “We believe the claims in this case are completely without merit and will fight vigorously against them.”

The newest filings include a sworn statement from LuLaRoe’s head designer of five years, Patrick Winget, in which he said that LuLaRoe CEO Mark Stidham had made several alleged threats to flee with the company’s money. Winget quit working for the company in September.

“While I was flying with Mark Stidham in his jet in 2018, Mark complained about the conduct and accusations by the retailers, and told me that he could just ‘jump ship’ from LuLaRoe and that he would take hundreds of millions of dollars from LuLaRoe and move to Wyoming or the Bahamas with DeAnne,” Winget’s statement said. “This was not the only time he made such statements to me, and he would frequently tell me that he would leave the company and take its money out for his and his wife’s personal benefits. Mark Stidham told me his …read more

Source:: Businessinsider – Life

      

(Visited 3 times, 1 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *