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505 Responses to “Arbonne Bankruptcy Rumors?”

1. 

   chloe
   

   08. Feb, 2010

   Ty, you have been great with your site here. You are a true networker and yes most people don’t like it when they hear something different if it is black and white infront of them. You first went with this back in October and then you had the same people calling you a liar and that there was no Chapter 11 coming. Now these same persons are saying it is a great thing even though the claim shows it has an outstanding tab over 300,000 to Tiffany’s. Those are actual court documents and yes I had a bracelet given to me last year. However, I feel it is wrong to gift us and then not pay Tiffany’s for it. So yes, it is nice if my boyfriend gave me a big diamond ring but if I found out that it wasn’t paid for and I was wearing, let’s say I wouldn’t feel good. How can we consultants feel good if our company is not paying for these gifts. Just some food for thought.
2. 

   chloe
   

   08. Feb, 2010

   Rebecca,

   So who is the knew company if this is true and why would would anyone buy it at a 400 million debt???? The banks finally got a taker?? Do enlighten us?
3. 

   Kathy
   

   08. Feb, 2010

   Rebekah H:

   I agree that people are in charge of their own finances, though I know personally that the pressure to put on a spendy recognition is great. I equate it to people who go into debt putting on a lavish wedding. They feel it was worth it to them at the time, but regret it when the bills come due.

   I find your comments about the “government-controlled media” laughable. This blog is hardly government-controlled. The bankruptcy filing documents ARE government-controlled, which is to THE BENEFIT of everyone involved in this mess. To imply there is a government conspiracy driving Arbonne debacle is ludicrous.

   On their debt: Arbonne IS NATURE’S GATE. They are the SAME COMPANY. The company is $800m+ in debt, a small percentage of which will be written off by the debt-holders. 85-90% of the rest will be swapped for equity. The remaining $125m will be carried AS ONGOING, SERVICABLE DEBT. All of this information is perfectly clear in the filing documents and the math is basic addition. This company is in debt 3x + their PREVIOUS yearly revenue and nobody knows what their revenue will be this year or if the company will be able to manage their Chapter 11. One has to just wait and see. At best Arbonne will come out of this as a company owned by banks, who have no experience in managing, nor desire to manage, an ongoing MLM skin care company. If I were a bank holding Arbonne paper, I would be working my butt off brokering a deal with QVC or HSN right now to salvage what can be salvaged of the brand.

   The Arbonne co-branded credit card has been out since at least 2006, it is hardly a “recent” creation. What I find interesting is that you apparently think that Arbonne encouraging carrying a credit card balance and paying the company interest is a good thing. First of all, Arbonne preying on it’s reps to overspend and have a monthly interest nut to pay is not positive, and second, Arbonne does not collect that monthly interest nut. The issuing bank does. Companies make a small percentage from each purchase with co-branded cards, they do not “collect the interest” to their own benefit. Last time I looked, there was no “Bank of Arbonne.” That interest will not be benefiting Arbonne. At best, the Arbonne co-branded card only makes it easier for reps to —drumroll please— BUY MORE ARBONNE!

   My issue with the returned checks is that Arbonne knew they would be switching banks, could easily have notified those holding bad checks from the company, and did not. In my eyes that is at best incompetence resulting in bad faith and at worst deliberate, outright fraud. They perpetrated ACTUAL DAMAGES by not telling what they knew. When you are a business owner and you deposit a check that is subsequently returned, you suffer ACTUAL DAMAGES in the amount of fees (which can be repaid by Arbonne), the bigger problem is the intangibles, like goodwill. Your commission check bounces, the checks you wrote on that money bounce, you can’t pay your suppliers, utilities, etc. If they had bounced a check on me, I would have sued them. I would not have waited around aimlessly reading EOA flyers waiting for my “new” check to come in the mail.

   My issue with Arbonne remains what it always has been – they knew in advance about every single issue that is giving them bad press and creating bad feelings right now, and they did nothing. The spin machine will not change that. They are killing their own company. No blog posts or comments can do any more damage than what the company has done to itself.
4. 

   Kathy
   

   08. Feb, 2010

   Correction,

   In my last comment I said “Arbonne is NATURE’S GATE.” I means “Arbonne is NATURAL PRODUCTS GROUP.”

   A thousand pardons.
5. 

   nancy
   

   09. Feb, 2010

   Chloe you are indeed a brown noser!!! To Sandy and Unbelievealble, thank you for posting something that makes sense for a change. It seems like all these TY followers have not done their research very well. I know from personal experience that Arbonne is a great company. It’s just too sad to see that some ppl are so ignorant and judgemental. There is and always will be people that make Arbonne or anything else for that matter look bad, But you are your own judge and you make your own decisions and that ultimately it makes you who you are as a person. So stop coming on here with your sad stories because you had a choice and you made your own decisions. I know that Arbonne will come out of this. They have owesome products!!! I love them and so many other people do too!!!!!