LoveSac is run by a shady operator

Editor:

As a graduate of the U, I turn to The Chronicle to represent my side of the LoveSac story.

Our company, SCT Limited, is one of the creditors with LoveSac. We are the agent between LoveSac and factories in Shanghai and carry the responsibility of $1.3 million that LoveSac owes to China. We are a family-owned and operated business that started with nothing.

We knew Shawn Nelson when LoveSac was nothing more than an idea and helped him develop his business with design development and financial support from the beginning. We were “friends.”

For our hard work, he has repaid us with lies and deceit over the last several months, resulting in an outstanding bill of $1.3 million. This has put our company in serious financial hardship.

To add insult to injury, Nelson didn’t have the respect to personally inform us that he’d filed for Chapter 11. We heard it from a loyal friend who worked with LoveSac for four years. Nelson has yet to return any of our calls.

Our side of the story, and the story of the other creditors, is one that should be told. Nelson has filed Chapter 11 for “protection from his creditors”-but I would like to know, who is protecting us from LoveSac?

Nelson built his company at the expense of others. He may have won Entrepreneur of the Year, but he is not a true entrepreneur. Success went to his head after winning the “Rebel Billionaire.” He thought he and his company were untouchable.

When things got difficult for LoveSac, Nelson had a decision to make-continue growing his company at the risk of his vendors or slow his growth and ensure vendors were taken care of.

Filing for Chapter 11 lets you know exactly what his decision was.

He said on the news that he had to file for bankruptcy because of “unreasonable vendors.” Is it unreasonable to want to be paid for the product he is selling in his store? We have given him extension after extension. At what point are we entitled to be paid?

I did a year internship with LoveSac while in my final year at the U for my communication degree. I worked there when the company only consisted of five people-helping to grow the very company that will now potentially destroy my family’s company. ?

Tauni SchmirlerAlumna