Dot Dot Smile has declared bankruptcy, two and a half months after discontinuing its MLM opportunity and going wholesale.
On September 3rd, Dot Dot Smile filed for Chapter 11 bankruptcy in California.
According to the statement, Dot Dot Smile has $4.4 million in assets and $5.6 million in debt.
The following companies are Dot Dot Smile’s major creditors:
Gary Thompson (family loan) – $200,000 CloudFund LLC (debt reduction firm) – $325,000 Mirror Fashion Co. Hong Kong – $1.5 million (no information provided) – $600,000 Network Ventures LLC (contract violation) – $353,846
Nothing MLM-related shows on Dot Dot Smile’s file, at least not outside of the corporate side of things.
According to a BerhindMLM reader, as of July 31st, 2022,
Since May, no one has been paid. Thousands of dollars are owing to certain persons. They fired everyone on their team.
The cynic in me finds it difficult to perceive Dot Dot Smile’s bankruptcy as anything other than premeditated.
Nicole and Jeff Thompson (right) of the company presumably knew bankruptcy was imminent and reasoned that they needed to sell the MLM firm before filing.
Without the MLM possibility, there was definitely no intention of ever continuing Dot Dot Smile.
I might be wrong, but Dot Dot Smile suddenly being $5.6 million in debt in three months does not seem realistic.
I’m not sure how any of this works legally. Even if everything is legal, it reflects poorly on the Thompsons in terms of openness and Dot Dot Smile’s distributors.
Looking forward, The State of Financial Affairs file for Dot Dot Smile is due on September 19th. A creditors’ meeting has been arranged for October 12th.
Nicole Thompson, the daughter of co-founders DeAnne and Mark Stidham, is connected to Dot Dot Smile.
It is unknown whether Dot Dot Smile’s bankruptcy filing has had or will have any influence on LuLaRoe’s business operations.