This Socially Conscious Subscription Box Company Has Suddenly–And Silently–Shut Down

You might believe that Alltrue, a subscription box company for the feeling-good and healthy, is still in business. You will find photos of happy people mixed with bold words about beautiful, sustainable, and valuable products.

However, Alltrue has not yet clarified to potential customers that they are closing down. According to a document that Forbes has viewed, the company, previously known as Causebox, is closing down.

Alltrue did not announce that it would be closing its virtual doors. Customers are left desperate for answers on Reddit, where a copy appeared for the first time last week. Frustrated subscribers still have to wait for orders they have already paid for. Vendors claim they have unpaid invoices worth at least $1.9million. Although the “Reserve Now” button is no longer functional, users can submit their email address and payment information elsewhere on the website to join the company’s waiting list.

According to a LinkedIn post by a former employee, the company in Los Angeles laid off all employees. Alltrue also filed documentation to begin an Assignment for Creditors, a voluntary alternative to formal bankruptcy. These cases do not require California public court filings. This step is possible for distressed businesses who want to minimize the publicity. Richard H. Golubow is co-founder and managing partner of Newport Beach-based law company Winthrop Golubow Hollander.

“[Alltrue] owes various creditors and cannot pay its full debts. Therefore, it has decided to cease its business,” another document relating to liquidation reads.

Rhaelyn, a cofounder of Mintier in Canada, made public her experience with Alltrue last Wednesday on a TikTok, which racked up over 14,000 views before being deleted. Her company makes oil-free, sugar-free breath mints. She is still waiting for an invoice for a shipment she sent earlier in the year.

Matt Richardson, CEO of Alltrue, did not make any public statements when the company closed down. However, he confirmed to Forbes Tuesday night that Alltrue was in the process of completing an Assignment for Creditor’s Benefit. He wrote an email saying that he was not permitted to make any further comments. “The assignee is hoping to receive an update soon. At that point, there will be more information.”

In 2014, Richardson and his childhood friend Brett McCollum cofounded Alltrue. It was founded by Richardson and his childhood friend Brett McCollum in 2014. It gained a loyal following of Facebook members who used it to trade, discuss and trade their Alltrue products with other subscribers. The most famous group had 15,000 members. Both founders were proud to help local artisans and were included on the Forbes 30 Under 30 Social Impact List 2019.

According to PitchBook, the company raised an undisclosed amount in 2020 from Ali Capital, Headline, and Bling Capital a year later. Forbes did not immediately respond to a plea for comment.

Alltrue was renamed Causebox in 2021 and sold quarterly subscription boxes that included all kinds of sustainable and ethical lifestyle products, such as vegan leather totes and portable speakers. Claims that have more than 300,000. Each subscriber pays $50-$55 per box.

Its image of a responsible company that supports small businesses is well-crafted. However, its treatment of vendors is not as good as it portrays. 18 Reddit users shared their information to try and get their dues when a third party liquidates Alltrue assets. Alltrue did not pay the companies that were expected to be featured this year, which left at least one small company with a debt of $400,000 and was on the brink of bankruptcy. Seven brands claim they owe $100,000 or more. Five vendors told Forbes that their attempts to contact Alltrue were met with silence. These businesses can file a claim as Alltrue’s creditors, but whether they will ever receive payment for their products is unclear. The vendors claim that they have lost 170,000 units of unpaid products from their businesses.

Golubow, the lawyer, says that creditors often receive nothing or a tiny amount.

It’s more than just money. These companies now need to think about what will happen after their product is sold to pay off their debts. It can be sold anywhere for such a low price. It removes all our control and our prestige. One vendor said that it was a bit scary.

Customers are also furious. Customers chose to purchase a single box or an annual subscription for $200. Alltrue offered optional add-ons every quarter. Amy Colton, a Baltimore 51-year-old Alltrue subscriber, said she was impressed by the company’s mission and commitment to highlighting environmentally-friendly brands. She signed up for Alltrue in 2020. She told Forbes that she was incorrectly charged for an annual subscription in Dec, even though she wanted to change to a quarterly one. She never received her April box. She had already paid twice for it. She is now trying to get $569.55 back from her bank.

“I tried and tried to speak to an actual human being, but then I did a Google Search for Alltrue to see if it was going under. She said that she reached out to her bank to resolve the matter.

Although Alltrue’s death seemed sudden, it is not the first time the company has been subject to scrutiny. The company, called Causebox, recalls stainless steel kettles sent to customers in early 2021. They posed a risk of burns and were voluntarily removed. According to the Consumer Product Safety Commission, 122 reports that the kettles released hot water or steam, resulting in 18 minor burn injuries. Alltrue gave a $20 credit to customers who purchased the kettle. The company at the time admitted that they sourced the kettles themselves while putting the name of Rose & Fitzgerald, a Brooklyn-based artisan brand, on the bottom of each kettle as part of a licensing arrangement.

Pamela Mars, a YouTuber, posted Alltrue unboxing videos to her channel. She said that the company took advantage of people who had the mindset of supporting small businesses and who care deeply about sustainability and sustainable products.

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Samatha Vale
Samatha a senior writer for HC's entertainment team. She is an entreprenuer, mother and an excellent writer. She's also an avid reader, music enthusiast and all around inquisitive person - which is just a nice way of saying she's nosy.

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