‘We’re going to be here’: Fashion brand goes into bankruptcy after bankruptcy filing
An American fashion designer is going to court to defend herself after being ordered to sell her clothing business, and she plans to make her money back through crowdfunding efforts.
In a statement posted to her Facebook page late Wednesday, the company called for supporters to help her financially.
The court documents, filed in Los Angeles Superior Court, state that Nicole O’Neal is being sued by a creditor who has accused her of making $1 million a year selling clothing online.
The company, which she founded in 2014, has also said it will be forced to close if she doesn’t stop making money.
It has also accused her creditors of a conspiracy to seize her business.
O’Neal, whose name has not been released, is facing a lawsuit from the creditor, and the lawsuit claims the creditors have violated the bankruptcy code by making false statements about O’Neil’s financials and accusing her of not paying taxes on income earned during the year she worked for them.
In the lawsuit, which was filed on behalf of two creditors, the creditors accuse O’Neill of not properly filing her income tax returns and failing to disclose that she had worked for a third party, the Associated Press reported.
The creditors also say that O’Nelles clothing company, LaundryLore, has failed to pay debts owed to creditors.
They claim the clothing company is in breach of its contract with creditors.
In its lawsuit, the creditor alleges that O,Nellys employees used a company email address to solicit people to join her business, but she refused to accept credit cards.
It also alleges that LaundromoreLore used the same email address for its own website, which O’s lawyers say was hacked.
In October, O’nelles filed for Chapter 11 bankruptcy protection, which allows creditors to seek relief from creditors.
It was not immediately clear how much money O’Donnell is seeking.