LuLaRoe Consultants Fear Bankruptcy

Patrick Winget, the head of design and production for LuLaRoe, abruptly left the $2 billion women’s clothing company in mid-September according to an article in Business Insider. In 2017 Lularoe was hit by a class action lawsuit.

Winget’s departure comes as many LuLaRoe consultants — the tens of thousands of women who sell its clothing — flee the business in droves, according to interviews with nine former consultants.

Sellers who exited the business last year said they are still waiting on refund checks worth as much as $8,000 from the company.

“I’m terrified [LuLaRoe] will go bankrupt before I get my refund,” said an ex-consultant who claims she has been waiting since December for a check totaling more than $4,000.

LuLaRoe did not respond to requests for comment on the refund claims. One of LuLaRoe’s most senior founding executives, Patrick Winget, has suddenly left the women’s clothing brand.

Winget served as the head of design and production for the multilevel-marketing company since its inception in 2013. He is widely regarded as a sort of celebrity among the tens of thousands of people — mostly women — who sell LuLaRoe clothing online and at private parties across the US.

In hundreds of social media posts over the years, LuLaRoe sellers have gushed about meeting Winget in person at LuLaRoe events. They have asked him to sign their clothing and have praised him as the “brilliant” mind, “man genius,” and “hero” behind the brand.

There’s a LuLaRoe garment named after him — the “Patrick” t-shirt — and late last year, the company sold thousands of t-shirts and leggings with an image of his bearded face printed across them.

Winget abruptly announced his departure on Instagram in September, writing, “Hello Everyone, Just wanted to let you all know that as of today I am no longer with LuLaRoe. I wish you all nothing but continued success. See you soon.” The post has since been deleted.

LuLaRoe later sent an email confirming Winget’s exit to its sellers. The email said Winget “decided to step down from his role, and pursue other opportunities” and that he would be “spending some important and precious time attending to some personal family matters.”

LuLaRoe declined to provide further details on Winget’s departure in response to a request by Business Insider. A 2017 Business Insider report revealed quality complaints about its clothing, including claims that its pants “rip like wet toilet paper.” Following the report, LuLaRoe launched a refund program for customers.

In the months that followed, thousands of consultants began fleeing the business by sending their unsold inventory back to LuLaRoe for a refund.

But the company has failed to refund many of those sellers, some of whom claim they have been waiting nearly a year for LuLaRoe to repay them, according to interviews with nine former consultants. LuLaRoe did not respond to requests for comment on the refund claims.

Ex-consultant Nicolette Fontenot told Business Insider that LuLaRoe owes her a refund check totaling $7,999.89. She sent the company her unsold inventory in December. “I’m pretty confident I’ll never see a dime,” said another former consultant, who asked to be identified only by her first name, Ashly. She said she has been waiting since February for a refund totaling more than $4,000.

Some former consultants said they are afraid the company is headed for bankruptcy.

“I’m terrified they will go bankrupt before I get my refund,” said an ex-consultant who has been waiting since December for a check totaling more than $4,000. She asked to remain anonymous for fear that LuLaRoe would retaliate against her for speaking to the media.

As first published in Business Insider