Dot Dot smile going out of business

LulaRoe’s daughter runs the company DotDotSmile. This company is the brand of the mega multinational marketing company LulaRoe. This company is famous for making kids apparel. If you are interested in worldwide business and want to know about “Is dot dot smile going out of business” then you are at right place.

Dot Dot Smile —— A Quick Overview

Nicole Thompson founded Dot Dot Smile in 2013. The founder Nicole Thompson started this company with the inspiration and dedication to make quality apparels for kids with love and care. This company was grown continuously. In 2016, the company turned into a full business and owns 1100 square-foot warehouse where it employed its full-time workers to make apparels for kids.

The business started to grow that is why, a 3300 square foot warehouse was attained in 2017. This business enjoys a rise in 2018 and saw many milestones as it moved into a large warehouse of 22,000 square foot. After that, the founder Nicole defined company’s purpose that is “To create smile and build confidence.”

In 2020, the business growth affected due to the Covid pandemic. However, the best strategy of the owner runs business efficiently in pandemic.

Is dot dot smile out of business?

DotDotSmile, a children’s clothing subsidiary of mega multi-level marketing company LulaRoe, filed for Chapter 11 bankruptcy this week.

According to the filing, DotDotSmile has more than $4.4 million in assets but owes more than $5.6 million in total debts.

Among the creditors listed by the filing were unpaid bills in the amount of $123,689 to a staffing company and more than $191,915 owed to Mercedes-Benz for the purchase of a 2021 Mercedes-Benz luxury SUV.

Nicole Thompson, the daughter of Mark Stidham and DeAnne Brady Stidham, founded DotDotSmile. The children’s clothing line was also sold alongside LuLaRoe’s standard collection of adult-sized clothing.

For years, LulaRoe was considered among the most successful multi-level marketing companies. It spawned several other spoke companies, including DotDotSmile and Honey & Lace, another clothing company.

However, in 2017, the company was hit with a class-action lawsuit claiming that LulaRoe, which at that point was raking in $2.3 billion in revenue annually, was actually a pyramid scheme. The company eventually agreed to pay a $4.75 million settlement.

However, after the case was settled, LulaRoe faced a gauntlet of additional problems. Many sellers began complaining about the poor quality of the leggings and dresses they were sent to sell, noting that the company’s products had severely declined in quality.

These complaints and tribulations bring more challenges for the company. The change in return policy that make impossible for sellers to return or replace damaged things brings more challenges for company. Many sellers of LulaRoe declared this company as the reason of their bankruptcy.

Some sellers also mentioned this company in their personal insolvency fillings. DSSRC prohibited company to run its operations with the claim that this company makes deceptive earning. It happened in 2021. BBB reported that DSSRC determined that company’s sales force dispersed the claims of aggressive earning that is not good. Due to all the challenges with the LulaRoe Company, its subsidiary “Dot Dot Smile” decided to no longer operate their business as MLM. They started to run their business on a wholesale model, which means that they change their way to do business. They are not out of business.