New York City-based yoga brand Yogasmoga on Monday filed a Chapter 11 bankruptcy petition almost one month after its creditors filed an involuntary Chapter 7 against them. The company reportedly has assets and liabilities each at between $1 million and $10 million. Co-founder Rishi Bali said that the company was “overgrowing” and it failed to raise more capital. In March 2015, the company was valued at $74 million.
Bali further noted, “As a founder of the company, I am gutted by the news because it’s really hard to build companies. Due to a combination of factors, we couldn’t close the financing. It was a little bit of overgrowing, and so we are filing so that we can shrink our footprint.”
Founded by Rishi and Tapasya Bali in 2013, Yogasmoga is a yoga-inspired athletic brand that began as an e-commerce website before opening stores in New York, New Jersey, Connecticut, Massachusetts and California. The company opened 10 stores alone in 2015 and opened its first New York City store in early 2016.
Also in 2016, Yogasmoga invested in Wearsafe Labs, a developer of mobile and wearable safety products, in order to utilize the company’s Wearsafe Tag security in its apparel.
Durga Capital, The Ravi Sing 2015 Family Trust, Jon Thomas Moore, Ryan James Moore, Jeffrey Stevens Moore, Lori Lynne Walsh, Sean Gallagher, and 99Degrees Custom, Inc. filed the Chapter 7 involuntary bankruptcy petition against Yogasmoga in November.