Subscription Box Scandal: Why Alltrue Suddenly, And Silently, Shut Down | Forbes

Pop onto the website for feel-good subscription box firm Alltrue and you might think the company is still operating as normal. Photos of cheerful people are mixed with bold language about beautiful, sustainable and useful products.

But there’s one very important detail the company hasn’t communicated to potential customers: Alltrue is going out of business. The company, formerly known as Causebox, is liquidating and shutting down, according to a document viewed by Forbes.

Alltrue never announced it was closing its virtual doors, leaving customers desperately searching for answers on Reddit, where a copy of the document first appeared last week. Frustrated subscribers are still waiting on orders they’ve already paid for, while vendors say they are sitting on unpaid invoices totaling at least $1.9 million. The “Reserve Now” button at the top of the website isn’t functional, but users can still submit their email and payment information to join the company’s waiting list elsewhere on the site.

The Los Angeles-based company laid off its entire staff of about 50 earlier this month, according to a LinkedIn post from a former employee, around the same time Alltrue filed paperwork to start an Assignment for the Benefit of Creditors, a voluntary alternative to formal bankruptcy. Since these cases don’t require a public court filing in California, this step can be taken by distressed businesses looking to minimize publicity, says Richard H. Golubow, cofounder and managing partner at Newport Beach-based law firm Winthrop Golubow Hollander.

“[Alltrue] is indebted to various creditors and is unable to pay its debts in full and has decided to discontinue its business,” another document related to the liquidation reads.

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