Yogasmoga Files Chapter 11 Bankruptcy

by San Antonio Attorney

Yogasmoga, a U.S. manufacturer of workout apparel for men and women, filed for Chapter 11 bankruptcy after a big disagreement with a key investor.

The retailer’s filing in the U.S.  Bankruptcy Court in Manhattan happened after an involuntary Chapter 7 petition filed against Yogasmoga in November.  Three of its creditors filed the petition, claiming $3.2 million in debt.  The two creditors involve are Ravi Singh 2015 Family Trust and Durga Capital LLC.  The two creditors are connected with with Ravi Singh, Yogasmoga’s ex-chairman of the board.

Court documents show that creditors filed the involuntary petition after Yogasmoga failed to pay the salaries of its employees.  According to reports, Singh had personal responsibility for those financial obligations and filed the petition with another round of payroll coming due.

Yogasmoga founder and CEO Rishi Bali said he was devastated because he worked so hard to build the company.  However, they need to file to counter overgrowth, he said.

Opened in 2013 as an online store by siblings Rishi Bali and Tapasya and Rishi Bali, the company opened stores in Brentwood, CA and Greenwich in 2015, and 10 more locations in 2016.

Yogasmoga stated assets and debts in the range of $1 million to $10 million.

Advertising its authenticity, the founders used to work at Credit Suise and Goldman Sachs but grew up in India.  The environment-friendly brand utilized only unretouched photos and made its products here in the United States.  The company’s headquarter is in New York City with major manufacture and retail operations in Massachusetts and California.

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