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Unpaid bills may lead to business litigation

Businesses often have to work with suppliers, manufacturers and other vendors in order to keep their operations going. These business relationships are often beneficial for parties on both sides, but they do not always remain that way. In fact, some companies may fall behind or even refuse to pay their outstanding bills, and a vendor may have to move forward with business litigation in hopes of receiving compensation.

Miami readers may be interested in such a lawsuit recently underway that a clothing supplier has filed against LulaRoe. LulaRoe is a marketing company that sells women's clothing and allows independent retailers to sell from their websites. However, one of the company's clothing suppliers claims that LulaRoe has accumulated seven month's worth of unpaid bills, which they claim total approximately $49 million.

The supplier also claims that the founders of LulaRoe have other companies that they use to hide assets. It was also reported that when the supplier confronted one of the founders, he stated that he would not pay the outstanding balances unless ordered to by a court. He also allegedly claimed that he and his wife would take their hundreds of millions of dollars out of the country. A statement emailed from LulaRoe to its sellers claimed that the lawsuit was salacious and unsubstantiated.

Not being paid is a struggle that many businesses have to deal with. As this case shows, it may take business litigation in order for companies to pursue payment for outstanding bills. If Miami business owners are facing such difficulties, they may want to work with their legal counsel to determine the best options for rectifying the situations.

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