Arula: What Caused the Sudden Closure of Its Digital Presence?

Arula began as a promising fashion brand dedicated to serving mid-size and plus-size women with stylish, confidence-boosting clothing. With its carefully curated collections, inclusive sizing, and community-driven ethos, it stood out in the market. It developed a devoted consumer base over the years, which liked its creative approach to plus-size clothes. However, despite its strong start, Arula’s sudden closure in 2025 left many wondering what went wrong.

This blog will examine how Arula rose to prominence in the plus-size fashion sector, the unexpected circumstances that led to its sudden closure, and the impact this brand had on its clientele and the marketplace. Additionally, we will highlight the crucial business lessons from the brand narrative that may help emerging businesses avoid similar outcomes. Whether you are a fashionista, a past client, or a businessperson, this blog offers valuable insights on branding, market shifts, and long-term growth.

The Rise of Arula: A Brand with Promise

Arula debuted in 2018 as A’Beautiful Soul, a sister brand to Altar’d State, which was a women’s fashion retailer with over 120 boutiques across 37 states. In August 2021, A’Beautiful Soul transitioned into the name Arula. This name derives from a Hindi word meaning ‘the most brilliant and filled with grace’ and ‘to shine as the sun’. Arula aims to provide lovely clothing and carefully chosen collections for midsize and plus-size women (sizes 10–24). The firm sells gowns, tops, pants, skirts, rompers, and accessories, all while adhering to a bohemian-chic style.

The company wanted to build a brand that inspired women to be confident and beautiful. It wanted to reinforce the idea that “size should never dictate style”. Arula offered an enjoyable and immersive shopping experience. They allowed customers to engage through multiple senses, such as at Arula Jordan Creek Mall. Additionally, the company gave back to the community by donating a percentage of its sales to both local and global charities.

Additionally, the brand expanded into intimates in March 2023 with a collection of over 130 pieces, including bras, bralettes, and loungewear, catering to millennial and Gen Z women. Moreover, the brand is available to customers in person everywhere. You can find Arula at actual store locations like the Oxmoor Mall in Louisville or online. Arula’s return policy allowed for 30-day refunds on unworn items with their original tags. However, some customers faced issues with Arula returns due to inconsistent sizing.

The Fall: Why Is Arula Closing?

On May 29, 2025, Arula stated in an Instagram post that they will close all of their Arula stores and online platform by mid-June. This came after 7 years as a business. In the post, they thanked customers for “every try-on, every tagged photo, every kind word,” but provided no specific reason for shutting down. While no official reason was given, several factors likely contributed to Arula’s demise. These include possible financial difficulties and operational challenges.

1. Financial Pressures and Cash Flow Issues

In the past few years, higher costs in materials, logistics, and labour have made it challenging to maintain a decent profit margin in the retail business of fashion. Because order sizes change for plus-size companies, such as Arula’s, this leads to additional costs. These costs could disrupt production and add on expenses that threaten the sustainability of a company.

2. Limited Physical Presence

The company was predominantly an online business and only had a handful of physical locations. They had 38 boutiques across 39 states as part of Stand Out For Good. The advantages of this business model were evident in the early days of the pandemic. As consumers’ behaviour changed, and as in-store shopping suddenly resurged, this configuration could, over time, have turned into a liability.

3. Market Challenges and Competition

The plus-size clothing market is fiercely competitive. Competitors like Torrid, Lane Bryant, and Eloquii fight for the same customer. Many people thought that Arula prices were a bit steep, ranging from $48 to $108 per piece. This was in comparison to other brands at a cheaper rate. While the shop Arula offered promos such as “TRYARULA” for 10 per cent off, or “BOGO” for 50 per cent off, those deals did not overcome the economies of larger retailers.

4. Sizing Inconsistencies

Arula’s size chart frustrated online shoppers; consumers observed, “Sizes were all over the place; a 16 was sometimes a 14 or 18”. For instance, a size 16 dress might fit inconsistently. Therefore, shopping without brand stores for try-ons is dangerous.

The Arula Aftermath: Customer Reactions and Industry Impact

The announcement of Arula’s closing has left its customers shaken. On Reddit, customers gave Arula reviews and described Arula clothes as one of the only options with “cute and flattering” plus-size clothing. They said it was “saddening” that Arula was different from “floral babydoll shirts” and basic options. The loss of physical locations, such as the Oxmoor Mall store, has frustrated customers who preferred trying on items before purchasing. This was especially given reported inconsistencies in the Arula size chart. Online customers who either used Arula promo codes or looked for Arula discounts find it challenging to locate similar brands.

This shutdown also exposes more widespread problems in the plus-size apparel industry. Reddit discussions suggest that other plus-size businesses, including Wray, Torrid, and Lane Bryant, have faced similar challenges. Some are closing their physical stores or trying to maintain profits at all costs. A lack of investment based on the false premise that plus-size is a trend and not a primary category has reduced consumer choice. Arula’s ending serves as a reminder that companies should place diversity and affordability first if they want to retain customers.

Entrepreneurial Lessons from Arula’s Demise

Arula’s story offers critical lessons for entrepreneurs:

1. Financial Sustainability: Arula’s premium prices would only appeal to customers willing to pay for high quality. Entrepreneurs need to evaluate if their business model is economically feasible, especially in low-cost local markets.
2. Market Understanding: The ability to understand what your target audience wants and can afford is so crucial. Arula’s price points and scant discounts may have prevented some customers from purchasing on a repeat basis. This highlights the importance of strong market awareness: entrepreneurs must adjust to customer expectations, or risk losing relevance.
3. Adaptability and Innovation: The fashion industry is changing continuously and requires the ability to adapt to these changes. Customer reviews consistently highlighted issues with pricing, sizing, and inventory, but the brand seemed slow to respond. Entrepreneurs must remain responsive to criticism and rapidly adapt to meet changing demands.
4. Community Engagement: Arula has a dedicated community, and some of the sweetest stories that the brand shares, but loyalty without a solid business is worthless. Think about how entrepreneurs can leverage community engagement while maintaining a viable business model.
5. Corporate Support: Arula’s may have competed with Altar’d State for resources under Stand Out For Good, Inc. For entrepreneurs in multibrand companies, it is essential to push for equitable support among brands.
6. Transparent Communication: Arula’s vague closure announcement left customers feeling abandoned. Therefore, transparent, honest communication can maintain goodwill, even during closures.

Arula Alternatives for Plus Size Community

Here are some brands that offer trendy, size-inclusive fashions for anyone in search of clothing alternatives from Arula’s:

• Eloquii: Eloquii, which is well-known for its elegant and modern designs, offers dresses, workwear, and gowns in sizes 14–32. Like Arula’s signature pieces, these are ideal for holiday events and dramatic appearances.
• Universal Standard:  This brand specialises in high-quality basic clothing in sizes 00 to 40. It’s perfect for long-lasting, versatile basics because it provides complementary sizing adjustments via its FIT LIBERTY program.
• Girlfriend Collective is a favourite for sustainable sportswear, catering to sizes XXS to 6XL. Their sturdy yet soft goods are suited for everyday and workout wear, reflecting Arula’s laid-back and cool vibe.
• Killstar, which specialises in alternative and gothic clothing, offers sizes up to 3XL. For those who are drawn to Arula’s more daring bodysuit appearances, the curvy designs are ideal.
• Tragic Beautiful: Offering striking, distinctive designs with a bohochic edge, this brand features sizes 16–24. Its different design reflects Arula’s style and personality.

Conclusion

In conclusion, Arula’s shutter was the end of a brand that had once empowered plus-size women to embrace trendy, inclusive fashion. Despite its strong start and loyal following, it ultimately struggled with pricing, inventory, and market alignment. Through this story, entrepreneurs can learn the value of price, accessibility, and market fit. Arula’s legacy ultimately serves as evidence of the importance of operational excellence in niche industries.

Additionally, the fashion industry needs to do better than treating size inclusivity as a fleeting trend. Customers may contribute to a more inclusive future by supporting companies like Universal Standard and Eloquii. Ultimately, Arula’s serves as a powerful lesson in resilience, market awareness, and the need for continuous adaptation, especially for entrepreneurs.

FAQs