When I founded Rhea Lana’s, a children’s clothing consignment company, 18 years ago, I knew that going into business would bring challenges. What I didn’t guess was that the biggest one would be the government.
For the last 34 months, I have found myself stuck between the Labor Department, which says my business model is illegal, and the federal courts, which refuse to clear the air.
I first set up shop in 1997, although it wasn’t much of a business back then. A stay-at-home mom in Conway, Ark., I realized that, like me, many mothers in the neighborhood couldn’t afford cute children’s clothes. Seeing an opportunity to help their families and mine, I began organizing consignment sales in my family’s living room. Before long these little sales grew beyond our wildest dreams. Thanks to my husband’s engineering know-how, we computerized, went online and began to offer real-time tracking of consignor sales. We converted to a franchise model in 2008 and now have 80 locations across 24 states.