Direct-to-consumer sleepwear brand Lunya has filed for Chapter 11 bankruptcy under the subchapter V provision on June 16, a move that involves restructuring and typically includes workforce reductions as part of cost-cutting efforts. While the exact number of layoffs is not specified in the filing, CEO Blair Lawson stated the company has "streamlined our team" as part of dramatic operating expense reductions. The company, which had revenue peak at over $50 million in 2020-2021 before falling to $35 million in 2022, faced significant challenges from Apple's iOS privacy changes that crippled its digital marketing, leading to a major inventory overbuy. Additionally, expensive retail leases from its expansion to seven owned stores have burdened the business. The bankruptcy filing aims to clear old liabilities and leases to return the small business to profitability.
