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Business

LuLaRoe CEO addresses inventory problems in leaked sound




LuLaRoe CEO Mark Stidham quickly taped inventory issues and wiped "sensationalists" on Tuesday in an internal video meeting in the wake of a Business Insider survey at the multilevel marketing company, according to leaked audio from the meeting.

On the conversation, Stidham's voice failed with apparent feelings as he told the story of a LuLaRoe seller whose name he did not know who he said was helping families affected by the recent California firefalls.

"As our society is doing well, I will promise you, we will continue to be attacked by those who do not understand who does not get it," he said. "There is a lot of excitement and curiosity around LuLaRoe. What's this thing? How did it happen? And unfortunately, it's sensational journalists who take that name and exploit it so that they can get some clicks on ridiculous, ridiculous things. to know people, they are going to do it and it does not matter to us. It's irrelevant. The is irrelevant. "

Stidham said he has received many emails from frustrated sellers lately week.

"I have read many, many of them and they are sincere and they are people worried about their business, people worried about whether we take care if we care about them," he said. "And I want to make sure we absolutely do it."

Sellers, also called consultants, purchase LuLaRoe's clothing at wholesale prices, and then turn it around and sell it to a brand to customers. Some have complained about inventory and quality issues, as the Business Insider survey revealed.

"I empathize 1[ads1]00% with your frustrations that you do not have the product to service your customers," said Stidham. "I do not have the product to service you and therefore I do not have the product to service your customers. I understand."

LuLaRoe representatives did not respond immediately to a request for comment.

At a time during the interview, Stidham offered an explanation of the company's loss of top sellers. About a third of LuLaRoe's top sellers have left the company since July, according to data under review by Business Insider.

"Have you noticed that a lot of top dealers have left the last? You want to know why? Because I refused to give them preferential treatment," he said. "They came to us and said," We are your biggest sellers, you must give us first choice. You must let us enter the warehouse and choose our own orders. You must let us get the things we need so that we can continue to grow our business. & # 39; And I challenged them on that thinking. "

Towards the end of the conversation, Stidham said he had recently traveled to China to secure more sources of production.

" I had a vision that we would find that these ancient Chinese smoke cigarettes in a back seat somewhere with a factory, "he said." The people we met are young entrepreneurs who are excited about the opportunity that comes to them because of what you sell. "

Shortly thereafter he drew and it sounded like he had begun to cry. "

" We make a difference in the world, do not forget it, "he said, his voice awkward." We have over two million garments coming the next three weeks and the pipeline fills and we will continue to get things like come. We love you. We appreciate you. "



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