LuLaRoe plans to lay off 167 warehouse workers amid legal battle
- LuLaRoe is laying off 167 employees at a warehouse in Corona, California, on December 20, according to a company filing.
- The warehouse closure comes as LuLaRoe remains embroiled in a legal battle with a former supplier, Providence Industries. Providence is demanding $63 million in a lawsuit that claims LuLaRoe failed to pay its bills for months.
- LuLaRoe has denied the claims in the lawsuit.
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The multi-level marketing company LuLaRoe is closing a warehouse in California and firing 167 employees who worked there, according to a company filing.
The company notified the state of California on October 23 that it planned to execute the layoffs on December 20 at its warehouse located at 1375 Sampson Avenue in Corona, California, according to a copy of the layoff notice obtained by Business Insider. The Press-Enterprise first reported on the layoffs.
LuLaRoe has other warehouses in Blythewood, South Carolina, and Fontana, California. The company did not immediately respond to a request for comment.
LuLaRoe sells clothing through a network of direct sellers. These sellers buy clothing from LuLaRoe at wholesale prices and then turn around and sell them at a markup at house parties and on social media.
The warehouse closure comes as LuLaRoe remains embroiled in a legal battle with a former supplier, Providence Industries. Providence, which also does business under the name MyDyer, is demanding $63 million in a lawsuit that claims LuLaRoe failed to pay its bills for months.
LuLaRoe has denied the claims in the lawsuit.