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Arbonne In Chapter 11 Bankruptcy: It’s Official

Arbonne has officially filed for Chapter 11 Bankruptcy protection in Delaware.  Here is the court information:

Natural Products Group LLC, U.S. Bankruptcy Court, District of Delaware, No. 10-10239

The company was more than $800 million in dept while Arbonne distributors were telling their prospects that the company was debt free.

From Reuters:

The company plans to borrow up to $20 million to fund operations during its bankruptcy, known as a debtor-in-possession loan.

Lenders owed approximately $530 million will end up owning 85 percent of the reorganized company’s equity under the restructuring plan. They will also have a new term loan worth $125 million.

Lenders owed about $216 million under a separate loan will be allocated warrants that will allow them to purchase up to 5 percent of the equity in the reorganized company.

Harvest Partners LP, a New York private equity firm, owns the prebankruptcy equity in Natural Products Group and it will be wiped out.

Harvest formed Natural Products Group in 2004 to buy Arbonne International LLC, a direct marketer of personal care products, and Levlad Inc, which owns the Nature’s Gate line.

Harvest, with other investors, provided $93 million of equity for the acquisitions.

Natural Products Group, based in Irvine, California, said in court documents that it grew rapidly in 2005 and 2006 as Arbonne added a large number of direct marketing contractors, providing an unsustainable boost to revenue.

The company’s net sales began to fall in 2007-2009 due to a loss of direct marketers and downturn in the economy.

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53 Responses to “Arbonne In Chapter 11 Bankruptcy: It’s Official”

  1. Chris says:

    Yes, it will be something we have to deal with and overcome it….in time. Ty, I really don’t know you…but you know how it is…people will get mad regardless…”your company is bk” or “you jumped from that company” or “our product is better then yours” or “oh yea…your former CEO left you to come to our company” it happens…I will just have to deal with the current conditions and be positive..and we both know if the person is driven and they love the product..they can make it work because “They” want to…Thanks for the congrats, and best of luck with your company and blog.

  2. Chloe says:

    Actually, the reason why the last quarter of 09 was strong is, they lower the qualifications in being AM, RVP and NVP. This was one of their ways to get people motivated since they lower the RV to be a VP by 20%. So basically people promoted to these positions but they would not have done on the old numbers. They also needed higher numbers because back in Sept/Oct Rita actually said we need to get 400 million fast. She said that on a VP call and I think that was a mistake to do. That is how the information leaked to everyone. NVPs started to confess and quit.

    Chris I’m sure you and Annette have done well and it is great but you both only represent not even 5% of the company. Yes, the car industry is different and let’s face it they own GM and the media is helping right now by putting Toyota down. I guess the bad news is helping us here in the Car industry. People are starting to buy AMerican made cars. However Cars and skincare-two different things. GM is a big staple in this economy.

    Glad that your numbers are up. I’m sure it will be easier to just sell instead of trying to get business builders. Not too many people would be brave enough to do it when Chapter 11 is around. The products are good and yes, it is a long road ahead.

  3. Price Futrell says:

    Just wanted to say that I’m finally over being mad. I didn’t like how Arbonne treated my wife after 5 years in the business but when it should have been a live and learn type of thing I let it get to me and mouthed off and said some things that I honestly regret. For that I truly apologize.

    We made a decision that has been the best thing ever for us. It was a difficult and trying time but we are over the hump and we are promoting people left and right.

    Perhaps my friends in Arbonne will find the determination to use the recent events to motivate themselves and their team through these difficult times and come out way ahead. I hope you do. You who are my friends are women of integrity and I have every confidence that you will represent yourselves well.


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