Startup YogaSmoga files for bankruptcy protection
New York-based yogawear retailer YogaSmoga has filed for Chapter 11 bankruptcy protection amid a dispute with its largest investor.
The filing with the US Bankruptcy Court in Manhattan follows an involuntary Chapter 7 bankruptcy petition submitted to the court in November.
Three creditors that claimed to be owed $3.2m submitted the involuntary petition. Durga Capital holds a $2.5m unsecured claim, which YogaSmoga disputes, according to court documents.
YogaSmoga placed the value of its assets at between $1m and $10m and said it has debts in the same range, according the Monday evening filing. Last year, the company raised $6.5m in its second equity round, which valued the company at $74m, according to PitchBook.
Founding siblings Rishi and Tapasya Bali left Wall Street banks to begin the New York-based company, billed as a challenger in the premium yoga market and drew comparisons with sector giant Lululemon Athletica.
The retailer opened two stores in 2014, and a further 10 this year, including its first Manhattan location.