Aired: 9/9/2021
Meet Mark and DeAnne, the founders of LuLaRoe - the legging company that went from explosive startup to four-alarm corporate wildfire. They share their life stories up to the founding of LuLaRoe. Seeing dollar signs, DeAnne grows her business from one woman selling dresses to a massive network of saleswomen. The business takes off and the future looks bright. Maybe a little too bright.
LuLaRoe goes corporate. Employees at “home office” recount the bizarre company culture. Demand explodes and LuLaRoe onboards retailers at breakneck speeds. The “leadership compensation plan” takes over the company and recruitment bonuses reach ludicrous amounts. Many of the retailers begin to hit a wall and LuLaRoe quickly becomes a billion dollar company on a collision course with reality.
LuLaRoe’s wacky culture turns toxic. Sexism, body shaming and gaslighting become hallmarks of the company. Retailers suspect they are in a cult. At the same time, the clothing quality deteriorates and defective complaints skyrocket. LuLaRoe faces thousands of angry retailers ready to part ways and the story explodes onto social media.
LuLaRoe buckles under the weight of complaints and accusations. Retailers leave in droves. Dozens of entities file lawsuits, including the state of Washington. LuLaRoe is a small fish in an ocean of MLMs preying on the least among us. The American Dream is just as much a story of predatory profit as it is a story of the unbreakable spirits of the women and families who seek justice.
