LuLaRoe's chief clothing supplier, Providence Industries, is suing the company for nearly $49 million.

The lawsuit claims the company hasn't paid its bills for seven months.

Providence Industries claimed LuLaRoe is "insolvent," and accused the company's founders, Mark and DeAnne Stidham, of hiding assets in "shell" companies to fund their "lavish lifestyle."

The suit claims Mark Stidham said on September 7, 2018: "Look guys, I am not going to pay you guys a f****ing dime unless a judge orders me to pay it, and DeAnne and I will take our two to three hundred million dollars to the Bahamas, and f*** everything."

In a statement on the case, LuLaRoe said: "We believe the claims in this case are completely without merit and will fight vigorously against them."

Business Insider reported last week that LuLaRoe is facing mounting debt, layoffs, and an exodus of top sellers.

LuLaRoe's chief clothing supplier is suing the company for nearly $49 million in a lawsuit claiming the multi-level marketing company has failed to pay its bills for seven months.

The supplier, Providence Industries, said in the suit that it has reason to believe LuLaRoe is insolvent, and accused the company's founders, Mark and DeAnne Stidham, of hiding assets in "shell" companies to fund their "lavish lifestyle."

The lawsuit, filed in a California Superior Court on Thursday, identifies 17 limited liability companies that are tied to the Stidhams that were created between July and December 2017. The suit claims the Stidhams have used them to purchase cars worth at least $2.7 million, properties in excess of $7 million, private planes, and other assets.

The suit said the companies are part of a "scheme" to "hinder, delay, and defraud the creditors."

Read more: LuLaRoe is facing mounting debt, layoffs, and an exodus of top sellers, and sources say the $2.3 billion legging empire could be imploding

The suit also claims that when representatives from Providence Industries confronted Mark Stidham in September 7, 2018 about bills past due, Stidham allegedly said, "Look guys, I am not going to pay you guys a f***ing dime unless a judge orders me to pay it, and DeAnne and I will take our two to three hundred million dollars to the Bahamas, and f*** everything."

LuLaRoe sent an email to sellers several hours after this article's publication that said the lawsuit "falls into the category of salacious, untrue, inflated and predatory claims targeted to strong arm LuLaRoe into an unreasonable settlement of their unsubstantiated invoices and claims."

In an emailed statement to Business Insider on Tuesday, the company said: "We believe the claims in this case are completely without merit and will fight vigorously against them."

The suit claimed LuLaRoe has additional debts, including $1 million owed to UPS as well as more than $3.1 million owed to other manufacturers. In a statement on the lawsuit, UPS said it is does not disclose customer information or comment on pending litigation.

Business Insider reported last week that LuLaRoe is facing mounting debt, layoffs and an exodus of top sellers. The company has lost more than one third of its top performers, who generate the most revenue for the company, since July, according to data reviewed by Business Insider.

Meanwhile, hundreds of LuLaRoe sellers — who buy the company's clothing at wholesale prices, then turn around and sell it to customers at a markup — have said they've been waiting months, some more than a year, for refund checks worth thousands of dollars.

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