Startup yoga clothing company Yoga Smoga Inc., founded by a pair of siblings who left Wall Street banks to begin the company, landed in chapter 11 bankruptcy on Monday amid a dispute with its largest investor, the Wall Street Journal reported today. The New York-based company was billed as a challenger in the premium yoga market and drew comparisons with yoga-clothing giant Lululemon Athletica Inc. It aimed to set itself apart as the authentic brand in a market saturated with flashy spandex pants. The chapter 11 filing with the U.S. Bankruptcy Court in Manhattan follows an involuntary chapter 7 bankruptcy petition submitted to the court in November. Three creditors that claimed to be owed $3.2 million submitted the involuntary petition. The creditors include Durga Capital LLC and the Ravi Singh 2015 Family Trust, both of which are associated with Ravi Singh, former chairman of Yoga Smoga’s board.
