WHITMAN (CBS) – Despite having a full-time job and a two-year old daughter, Kristin Stafford decided to start a side job selling clothes from the popular LuLaRoe collection.
“The very bare minimum is $6,000. It’s a lot of money to throw right up front,” she told WBZ-TV.
With that investment Kristin became an independent fashion retailer with the company last year. She bought clothes at a wholesale price from LuLaRoe and then sold them at a retail price to customers.
But after a successful couple of months, her sales started to dry up.
“It kind of lost its sparkle, so to speak,” she said.
Then LuLaRoe offered a special waiver to retailers – they would buy back any remaining inventory in exchange for a full refund.
It was an alluring offer for Kristin. “Just under $8,000. That’s a lot of money,” she said.
So, Kristin decided to shut down her side business last June, but she’s still waiting for that money.
“It feels like they don’t care. And they are happy to keep your money and your merchandise and say ‘See you later.’ ”
When the I-Team’s Call 4 Action reached out to LuLaRoe we received the same statement — twice — and no one would talk to us on the phone.
That statement says ” We continue to process Returns on Cancellation of Business Requests after careful review and as practicable. We are in direct communication with each Independent Fashion Retailer during this time as they move through the various stages of their request.”
Kristin says others should be careful when looking into this kind of business model.
“I think if you’re going to make the leap into doing one of these direct-selling companies you really need to make sure that you’re okay with losing money.”
LuLaRoe is currently facing a $1 billion lawsuit from former retailers claiming the company is a pyramid scheme. It’s a charge the company denies.