Dead savvy gems startup Cuff sued by merchants for unpaid work

Sleeve, the brilliant adornments producer that guaranteed a line of design wearables equipped for sending crisis alarms to trusted family and companions, close down prior this year leaving various client orders unfilled and merchants unpaid. Presently, the organization is being named in a liquidation suit recorded by five of its assembling accomplices.

In one case, the producer Volume and Tone, LLC created more than 100,000 bits of gems so as to satisfy Cuff’s client orders, yet was never paid. Only they were owed $65,000 for their work, which included sourcing and conveyance of the item, yet different merchants are owed in the many thousands, as indicated by court filings.

Sleeve originator Deepa Sood initially met adornments planner Lane Tabb, one of the merchants named in the claim, through an embellishments venture Sood was taking a shot at for Restoration Hardware, where she was before beginning Cuff.

Tabb’s experience in brand administration, innovative bearing, outline, improvement and assembling has seen her working for brands like Kate Spade, Donna Karan, DKNY, Rebecca Minkoff, BCBG, and Herve Leger – work that made her consultancy Lane Tabb Accessories Group (possessed by Volume and Tone LLC) a great possibility to band together with when it came to creating the gems for Cuff.


The Cuff gadget was intended to comprise of a little, Bluetooth-associated part called “CuffLinc” that could be put inside a fluctuated line of appealing gems, similar to wrist trinkets and pieces of jewelry, and additionally keychains. At the point when the Cuff was crushed, anybody in the wearer’s pre-arranged system would be cautioned and sent the area of the Cuff proprietor. An application would likewise be advertised.

Tabb made specimens (non-working ensemble pieces) for Cuff in 2013 which the startup then utilized as a part of a video appeared to financial specialists. Despite the fact that requested that surge the inspecting, the pitch worked: Cuff could bring seed financing up in September 2013.

Sood again connected with Tabb in September 2014, the gems planner says, to advise her she had pre-sold many requests, had done press, and was prepared for generation. The planner clarified that Cuff was not generation prepared.

“I advised her that the pieces we had initially made for her video were simply outfit pieces — they didn’t have any connector for a chip, because of the chip not yet existing when we made them,” Tabb lets me know. “I clarified we could get her prepared for generation with legitimate inspecting rounds once we had the genuine removable chip, and genuine specs composed with the cut-out system culminated.”


Yet, Cuff had focused on conveying the pieces to clients by mid-November 2014. In spite of the hurried course of events, Tabb went up against the test, and recommended that a few pieces be created locally with a specific end goal to accelerate the procedure, as others were made in China in the meantime.

As the procedure started in 2014, Sood pressed, went to occasions and sat on boards at meetings. In November 2014, Cuff was named the most delightful new wearable at Decoded Fashion’s opposition. There were no generation pieces right now, however – just props.

Before long, the buildup around Cuff paid off. In January 2015, the organization reported $5 million in Series A subsidizing in a round drove by NEA alongside seed financial specialist Tandem Capital alongside Tugboat Ventures.

The main pieces made in the U.S. – around 5,000 things – were dispatched out February through April 2015, Tabb reviews. Sleeve clients were educated about their pre-request delays by means of email. Numerous clients had pre-requested the adornments as far back as 2014 when it was initially declared.

One email sent in spring 2015 offered clients the capacity to drop their requests and get a discount. A few clients could get that discount. Others held off on recovering their cash and rather sat tight for the last item to transport.

In summer 2015, another round of messages was unleashed, apologizing for the proceeded with postponement and again offering discounts. Yet, the email additionally incorporated a notice on the venture, and put forth the defense for keeping on supporting the startup.

“It’s been an excursion for our little group and we have weathered things like electronic segments coming in defective and shipments of other key parts being deferred,” composed Cuff’s originator, sounding especially like the ordinary startup underdog.

In any case, the parts were “postponed” on the grounds that Cuff had experienced three rounds of false-begin creation, says Tabb, who was straightforwardly required with the generation procedure. Sleeve mixed to make sense of points of interest that ought to have been chosen before offering the gems – things like which base metal ought to be utilized, for instance.

“Every time they enlisted another inside worker, the new individual would come in and change something. Notwithstanding when the request was verging on through creation,” says Tabb. “So we would need to discard those pieces and begin once again. We have never worked with an organization that altered their opinions on subtle elements at last phases of creation,” she regrets.

Pieces from China delivered in August 2015 with the last shipment in October 2015.

In October 2015, Cuff messaged unfulfilled clients with a guarantee that another clump of gadgets was transportation that month or the following, and offered the alternative of getting the first gadget in addition to a 15 percent discount alongside different motivating forces. These incorporated a $15 credit for a gems box that wouldn’t deliver until some other time, a free bit of adornments, and a coupon for 20 percent off a future request.

The other choice introduced was to hold up until April 2016 and take conveyance on another Cuff gadget that would incorporate wellness following.

After the last shipment in October, Cuff approached Tabb for a couple days to pay their last receipt. The startup had constantly paid on time over the two years of cooperating, says Tabb, so she wasn’t concerned. She paid her manufacturing plant accomplices out of her own pocket, and held up.

In mid-October 2015, Cuff went dull. Tabb says the startup quit reacting to writings, telephone calls and messages sent to the bookkeeping office, the CFO/COO (Nandita Bhargava, the sister of Tandem accomplice Sunil Bhargava), Sood, and the various VCs, asking for installment.

In December, Sood reacted by means of email and a Tandem financial specialist called to say that Cuff was bankrupt, and the firm was claiming the rest of the benefits.

Sleeve had assumed an extra credit of $1.6 million from Tandem in 2015, which gave them an extra board seat. Pair, controlling the board, chose to obtain resources through an optional organization called Bijoux Corp, made around the same time that Tandem moved to sell Cuff resources. Bijoux was the main bidder at the bartering.

Clients begin a “Defrauded by Cuff” page

Tabb wasn’t the one and only left stranded. Clients who didn’t get their things reached their banks to record misrepresentation reports, and numerous experienced difficulty getting a discount due to the deferral between the request time and the report.

As one client we talked with grumbled, “in light of the fact that the request past the 130-days mark, Wells Fargo said there was nothing they could do about it. There are so a number of us that have had the same issue. We paid a group of cash for something we never saw and where is [founder Deepa Sood]?”

Others, including the individual who began the “Defrauded by Cuff” Facebook page, would be advised to fortunes getting their banks to discount them.

She said Bank of America made an exemption since Cuff messages guaranteed the item was all the while shipping.


Since this spring, the “Misled” Facebook page has been urging guests to get the message out and document claims with the FTC and BBB; it’s sharing tips on the best way to get your bank to help you. Individuals are additionally attempting to discover a lawyer to go up against their protests as a legal claim.

Tabb, in the interim, soon discovered she wasn’t the main merchant stiffed.

“I began getting telephone calls from different sellers,” she says. “Sleeve had utilized my organization as an acknowledge reference for these different merchants so they thought about us, and called us when they likewise hadn’t heard anything themselves, and were attempting to get paid. We are really owed the in particular alternate sellers in the suit,” she notes.

Sleeve had outsourced a lot of its business, it turns out. Different sellers had taken care of the application improvement, the designing, the hardware, the module packaging and fabricating, and the bundling/co-bundling. Another was making all the showcases for Cuff’s Target dispatch.

Tabb’s firm, Volume and Tone, LLC, is owed $65,344.94. Yet, different sellers were expected considerably more.

As indicated by a request documented in California’s liquidation court, Sigma Connectivity is owed $549,714; Stephen Gould Corp. is owed $258,995.32; DUCO Technologies is owed $213,366.66; and Colony, Inc. is owed $104,872.38.

The legal advisors had exhorted the sellers to constrain Cuff into automatic liquidation. This would oblige them to open their books so a court-delegated outsider could explore if there was any wrongdoing or misappropriation of assets.

“We need to get paid for our work,” another seller, Ola Möllerström, head of offers and showcasing at Sigma Connectivity, told TechCrunch, with respect to why it joined the suit. “We were shocked that Cuff ceased their business and we have requested that a law office bolster us.”

Different merchants never reacted to rehashed demands for input.

As a little entrepreneur, the effect on Tabb has been substantial – Cuff took so much time that she couldn’t go up against different customers.

“It’s been exceptionally troublesome. in any case, we are overcoming it. Not at all like Cuff, our base running expenses and overhead are sensibly overseen, so that when things like this happen you don’t go absolutely under,” she says. “We are an organization that is ingenious, gifted and skilled, instead of such a variety of organizations now that are simply smoke and mirrors – that is turning out to be increasingly common nowadays,” she proceeds.

“It’s deplorable that financial specialists are remunerating this sort of unreliability with vast capital implantations on new businesses that have no real results to appear… I have no issue with organizations putting resources into a thought, yet not to this degree,” Tabb includes.

Apparently putting a greater amount of the fault for Cuff’s disappointment on the financial specialists, Cuff originator Deepa Sood had this to say in regards to the suit:

“Just before Thanksgiving of 2015, Tandem chose to stop installment on the advance for reasons that are in question. I put in $200,000 of my own cash to purchase the organization some time and keep representatives — we had quite recently begun sending first item and had orders from Target and Amazon, and additionally our immediate buyers that we had been working day and night to satisfy. Amid this time, the expectation was for the Board to make sense of option raising money alternatives. Rather than that event, Tandem, as the advance proprietor, moved to unload CUFF resources,” she says.

“After CUFF was covered, Tandem, as 66% of the Board, took control of all correspondences between clients, merchants, and so on. I didn’t (nor do I now) have any entrance to email, contacts, site and so on nor was I required in effort to merchants, assuming any,” includes Sood.

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