Arbonne has emerged from Chapter 11 Bankrupcy…
Under the deal, lenders owed about $530 million took control of 85 percent of the stock in the reorganized company.
The case is In re Natural Products Group LLC, U.S. Bankruptcy Court, District of Delaware, No. 10-10239.
Really??? So there is no more debt or do they have over 160 plus still. The letter states they are owned by some banks and other financial groups. Still looks a little unsure. Any comments.
They only got rid of 80% of their debt. They are now owned by the banks. The future depends on the board of directors most of whom are bank executives. Hmmmm……. I wonder if they are looking at bonuses, commission checks, PA accounts, requirements for management. Nothing is guaranteed, which of course, causes one to speculate on the future of Rita with Arbonne.
So maybe they will be a billion dollar company and things will be better. Any other fews? I can’t use the old presentation since HP doesn’t own them and they are not debt free yet. Still feels weird. So 160 million debt??
Ok, do is everything going to be alright???? So our company is 160 million in debt and we are owned by banks. I don’t know how to tell the arbonne story now. My presentation said we are with HP and have no debt.????? Now is it true that Rita will be leaving???
Wow, so is Arbonne really emerged or is this being sugar coated???? I was with ARbonne and was debating to go back but I’m not sure. I went to AM quickly but then stopped since our rvp, nvp and envp were all kicked out. Too many things to say of what they did.. I stopped since the team was corrupt. I was wanted to relaunch since I know I have a good base but still feel unsure of what is going on at the top. Is the arbonne vision watered down now since the owners are bankers. Not really seeing the vision of profit bankers. Need some advice
Jess,
Arbonne is actually strong than ever before. I just got back from NTC with Arbonne and we have launched amazing new products that are going to grow our business to the top. Our team is extremely amazing and supportive, and I would love to have you email me if you would like more information about joining again. I would love to have you join our team…We are going only one way…TO THE TOP.
Please email me if you are interested in talking more about joining or have any other questions.
dcr_lovesyou@yahoo.com
Respectfully,
Dana
It really is beyond sad that Arbonne won’t tell the truth to their consultants. Sad, sad, sad. They will continue to lie and cover-up and no one will know what to believe. But of course, saving their poor, sad company is their first priority. Everyone else be damned. Good luck building a business with that!
Keep it Real, what is your take on all this?? Is it really that bad. The letter even states that things can be changed in the future since the bank does own them. I just find it funny how other sidelines I know are already saying we are debt free. It is not true. We are just owned by banks. Which could change if the banks sell Arbonne. I just need some more advice since now everyone is just on NTC this week being the best thing in life. Yes, there some vps doing ok but how is the whole company really doing?
I also have no idea with what is true or sugar coated anymore with Arbonne. When I started things were clear but now I have no idea with all of our VPs who were fired or quit.
Hi Jess,
I agree with Rachel, I don’t think anyone knows the answer to your question.
For me to build a successful business I need to 1.) believe 100% that my products add value to my customers 2.) know that my company has leadership and vision I can believe in and 3.) has the money to make it happen.
IMO, if you answer those few basic questions, you should be able to decide what you want to do with your business.
Good luck!
Traci
tbkuhn@wideopenwest.com
They just launched the new products. Apparently things are going to turn around for Arbonne.
Just got an email from an Arbonne friend with all their packaging and revamped of skin care and makeup. Looks terrific and great for the reps if things are looking up for Arbonne!
Janette
Did they launch 151 new products? That was one of the things I was hearing. . . If so, what on earth are they all?
MAke-up and plus the RE9 advanced line. They want to shoot to hit 2 billion in sales by 2011. So does Arbonne still have a debt of 120 million or is it debt free?
160 million in debt and revenue last year around $250 mil.
Two billion? How about one billion in sales this year. . .
It seems that things are questionable there. If you choose to look at other companies, here is a list of success factors that might be helpful in grading other options. It was shared with me and I found it very helpful in making a decision. I wich you the best in the decisions each of you are facing.
1. Company track record; more than 5 years old
2. Debt free
3. Stong managment, preferably Fortune 500
4. Unique consumable products
5. Competitvely priced
6. High monthly reorder rate
7. Low personal production requirement
8. Low entry fee
9. Timing–product need, saturation
10. No breakaways
11. No risk
I think Arbonne is looking up now. We are going to hit 2 billion dollars in sales by 2011.
2 Billion by 2011? The court documents filed by the company clearly indicate a much different picture [see Disclosure Statement, Schedule 7, p. 8] Smart Reps will do some research before spouting ridiculous hype like this that will make them look stupid in the end. The below is picked up from MLM-the whole truth and the court documents are available at the Arbonne website. Anyone who thinks Arbonne can hit 2 billion by 2011 can’t read or doesn’t know how to use a calculator. In addition the excitemen generated on new products just introduced will not carry this simply because the word less than a month after introduction, too expensive, sticky, smells bad and drys out your skin. My prediction on the next big headline “Arbonne out of Chapter 11 in 37 days, into Chapter 7 in less than 12 months”
Here’s what somebody else wrote:
Obviously, this is a chapter 11 bankruptcy filing, and so the comment that
the company is not ³bankrupt² is completely off base. This is a continuation
of false information put forward by people shilling for the company over the
years (see Arbonne reps¹ standard line: ³Arbonne is a 26-year-old, debt-free
company with Dun and Bradstreet¹s highest credit rating² available on the
company website and elsewhere
http://www.arbonne.com/company/opportunity/people/eoa.asp?vp=wurgler_d).
Arbonne and its parent were carrying a huge debt load since 2006, and could
not service the interest on the debt.
Suggesting that the lenders are ³willing to forgive their debt² is equally
misleading. The lenders have no choice, and are being forced to write-off a
major portion of the debt by the bankruptcy process. They are owed $750M,
and are being stiffed by a borrower that cannot pay. So the company is going
to give the lenders 85% ownership in the company, warrants to acquire
another chunk of stock, and reduce the loan amount to $125M. This is the
corporate equivalent of the bank foreclosing on your home. The bank owns it
now.
The bankruptcy court disclosure statements filed by the company reveal that
they project that they will lose money in 2010, even with most of the debt
written off. They project a small profit in 2011, but that assumes that
sales at Arbonne grow by 7% in 2010 and 5% in 2011. [see Disclosure
Statement, Schedule 7, p. 8]. How does that compare with actual sales
trends?
2007 Sales: $722,494,000
2008 Sales: $569,157,000
2009 Sales: $370,993,000
Actual sales have declined significantly for two straight years. In order to
generate enough money to pay the expenses (including interest on the
projected $145M in new debt, post-bankruptcy), the company will need to
reverse the sales decline and grow by more than 12% over the next 23 months.
How likely is that given the bankruptcy, the current economic climate, and
the impact that these events will have on the ³consultant² base?
http://www.mlm-thewholetruth.com/network-marketing-news/arbonne-bankrupt
Apparently they had an excellent month in March. The CEO Kay said they will hit 2 billion by 2011. They are booming is what everyone is aaying with all these new promotions.
How can people read what Robert wrote and still buy the hype statements Arbonne folks are saying? Having been in Arbonne for 6 years before resigning because of this nonsense, I know that “we” simply said what was said to us without validating the information. The new products are not the cat’s meow either, people. They are causing breakouts and lack the performance of the orginal line of RE9. This is from existing consultants and customers that are using it. It won’t affect everyone but I think that it’s interesting that people that have faithfully used RE9 and love d it are having problems with the new line. Their skin is prepped and healthy from RE9 so that cannot be used as an excuse. I’m anxious to see how consultants start answering to that problem. The fact that some of you guys need to pay more attention to facts rather than hype is if utmost importancehere. Nobody wants to see Arbonne fall but lies and smoke and mirrors won’t keep it together.
Wow, my team is really rocking. My business went up 300% this month. The new products are out of this world. Good things from earth. Love it.
How’s your business this month, TC?
It’s called hype versus reality. If the CEO is saying 2 billion by 2011 I would be very surprised. Even without MLM experience I believe Kay must have some business sense. That being said if she is using March sales, after launching new products as a benchmark, she is making a big mistake. Anyone with MLM experience knows the short lived boost in sales after an event. This is because the current reps are “buying” it for demo. The real deal will play out over the next 3 months, can they sell it AND do people repurchase?
What does it take for people to look at the numbers and facts? And the legal documents from the bankruptcy fillings? March is notorious for being a banner month because of the introductionof new products. Same cycle, slap down those credit cards, build more debt and then get all giddy over volume. Volume that tends to “explode” in March and then quickly, and I mean quickly, vanishes. This is nothing more than a false belief that your business is growing. The “emotional hype it up” is so old and nonproductive. A bump or even “300%” increase in volume means nothing! What are the sponsoring numbers? How many managers and vps are promoting? In what direction have the commission checks been moving over the past months and even years? What the is the growth rate of the company? Accurate sales and volume growth over and extended period of time. Numbers don’t lie. March volume numbers won’t be the necessary foundation for building a profitable, sustainable business.
I, too, want to see all the figures in 3 to 6 months. For me, it’s about integrity. The lies, half-truths and misrepresentations over the past 3 years have violated principles of honor and trust.
And will we see the REAL NUMBERS for the next few months? They were hidden before. Is Arbonne going to publish the facts and make them known to their consultants? Can we even trust they will based upon previous behaviors? Integrity; where oh where have you gone?
Lisa DeMayo has tons of VPs promoting this month. Apparently she is doing great and everyone is saying the the RE9 advanced sees results in 24 hours
Well, the products work and yes it will take time to make back up in sales but it will be fine. The response has been great and you will see the sales climbing each month. This is better then the old re9 and the make up is great.
Well, I attended an Arbonne meeting just days before they filed their Chapter 11 Bankruptcy. Of course, there was no way I would even consider signing due to the entire smoke and mirrors BS I was seeing & hearing, but more importantly, their products did not agree with my skin, at all. So, tell me, how could I sell something that I, myself, couldn’t even wear? And, then I remembered a product I had tried a year ago, at a Girls’ Night Out Event in the Chicago area. I remember thinking the product was exceptional, but never having even a reomote connection to anything MLM-related, I thought I had better do my homework. So I researched the company, the Corporate team& their culture, looked over the comp plan, had a couple phone converations with a local Chicago area leader, attended two meetings…..and lo and behold……I actually signed on! And, that lovely star of a company is a mere 15 months old right now, and I like the fact that it is a new and budsing company with an amazing French skin care line that ROCKS! Ty, check it out. Just got DSA approval about a month ago. It’s called Votre Vu, and I am so totally sold on it that I signed on with my first MLM at the age of 48! AMAZING! JUST AMAZING!!!
I’m loving the new products. I know we went through the restructuring, however we have had 85% of the debt removed. We are owned by our lenders so of course they are going to want to make Arbonne do well. You have to try this stuff.
I am really loving this new products. I am thinking about relaunching with this company again. The sales are going high with this. I love the results
Just remember, if there is growth there, a lot of it was funded on the credit cards of existing Arbonne reps buying the new products released at the convention.
Two Billion? I doubt it, but it’s good that they are no longer in bankruptcy.
Arbonne is not that great guys.
Ok, waiting to hear about the tons of new promotions. When again is that going to happen? Better be pretty quick because reaching 2 billion by 2011 will take incredible momentum beginning now. You must be laying the proper foundation for such a lofty, ambitious goal.
How about those of you who said you were going to relaunch? Any success yet? Where are you???? Come on, give me some of that NYC hype. Run out of it yet? Or are you just soooo busy making tons of money and promoting tons of managers you haven’t had time to update us with your extraordinary results. I’m just giddy with anticipation.
I’d like to piggy-back on Traci’s comment. I certainly agree with Traci, but I’d like to add another important factor. When we build a team of consultants or distributors, (regardless of the terminology our company uses) we have a moral obligation to make sure that we are offering our friends, family, associates, and acquaintances an opportunity for real, secure, financial gain.
People place their hopes and dreams in our hands when we look them in the eye and say, “I’ll help you succeed.” If we are involved in a business that has so many immediate problems that the future is totally obscured, we have no business encouraging them to invest thousands of dollars in a future they cannot control. When we know there is a strong potential the company may not survive, we put our friends in a position to lose, no matter how hard they work or how much success they personally achieve.
Seems like Arbonne is doing good so far. Maybe they will hit 2 billion in 2011.
Wonder what “seems” means.
If anything happens to the company or its products don’t deliver, can an independant consultant be sued? Of course anyone can be sued, but is there any protection from the company?
Unbelievable that all Arbonne has to say is that they are going for 2 billion in 2011 and people swallow it! How is that possible????? Based on what???? Wow, I would call that ignorance on fumes. A true business person does the necessary investigating and isn’t led by fickle emotional hype. It really is beyond my comprehension that people can so easily be led astray with hyped up emotion and pretense.
I signed up to be a distributor with Arbonne and worked my butt off for 6 months. I only signed up 4 business builders. Though there were many who loves the products, i felt like i was pressuring my friends and family to buy. Then I learned how to utilize the internet to get leads and I have signed up a ton! It’s exactly what Ty Tribble is doing and it is way of the future. If you look at the statistics of arbonne’s top reps, it’s less than 1%! I don’t have enough patience, and quite frankly, the energy to try to be that small percentage.
Plug into a system like what Ty is offering and you’ll have tons of success.
I just heard from someone on FB that Rita Davenport was fired. Did anyone else hear this rumor?
Here is the letter that Arbonne sent to the Vps. I find this fishy. Rita said she would only retire by a coffin. I heard first that she was fired. If she was retiring why would she be booked for
for some discover ARbonnes in England. She is booked for May 12th. She was also on a CC this past Saturday. Not what a person is knows they are retiring would do. Too fishy
It is with bittersweet emotion that we share with you recent developments at Arbonne. We are gratified to report that the company has achieved great progress and accomplished so much in just one year following its financial restructuring. Despite an uncertain economy, the Company is at an inflection point of substantial, sustainable growth and has been growing on a year-to-year basis for the past 12 months. This is a major accomplishment, for which each of you should be extremely proud. Our recent success has truly been a team effort, reflecting your hard work and that of our new executive leadership.
At the same time, after 20 years as a dedicated member of the Arbonne team, Rita Davenport has decided to retire. We tried to persuade her to stay, and in fact we offered her many meaningful opportunities with significant compensation that would have allowed her to remain a vital part of Arbonne field development. We respect Rita’s decision at this point in her career to retire from Arbonne, take on new challenges, and we wish her all the best in her future endeavors.
Rita has touched and inspired so many. She has been instrumental in helping many of you achieve success at Arbonne and she has been an important part of making Arbonne what it is today. We greatly appreciate Rita’s hard work, passion and leadership over so many years.
We know you feel the same way. It is clear that you appreciate Rita and all that she has done for Arbonne and for many of you individually. We also understand that change creates challenges and uncertainty. However, it is important to realize that truly great organizations such as Arbonne owe their success to many factors, the most important of which are the drive, passion, vision and leadership that each of you brings to the company, your fellow Independent Consultants and to life in general.
Arbonne has made tremendous progress over the past twelve months, much greater than anyone could have imagined. The Company is in its strongest financial position in years, with healthy free cash flow and modest leverage. This will mean more income for Independent Consultants who are actively growing their business. New executives, with proven leadership and business experience, have been recruited, each of them believing in the power of Arbonne and the outstanding track record of the Independent Consultant organization. Significant investments are being made in business-building initiatives, product development, technology/systems, logistics and financial controls, all with a view toward supporting you and helping you grow your business.
Kay and her management team work tirelessly with that as their primary goal. Of course, there is still work to do and it is impossible to please everyone all of the time, but we believe these initiatives are beginning to show results and we have expectations for even greater success and accomplishments over the coming months and years.
This was not always the case. It is important to realize that in the past this Company’s growth was driven by unsustainable initiatives, and was not supported by the necessary infrastructure, systems and people with the experience to manage and sustain that growth. Furthermore, the excessive debt incurred by prior owners and management, coupled with the worst economic downturn in most all of our lives, created substantial barriers for this Company to overcome. Arbonne has made tremendous progress, in less than two years, toward overcoming these barriers and positioning itself for accelerated and sustainable growth.
We are aligned with and support Kay and her management team’s efforts in leading this business, but even more so we applaud, acknowledge and greatly appreciate the continued hard work, dedication, commitment and leadership of the field. We know – as does Kay and the management team – that you, the Independent Consultants, are the lifeblood of this Company and that sustaining, supporting and growing your businesses underlie all decisions. The ultimate goal of the management team is to make each of you more successful, which will then lead to success for the Company.
Thank you for all that you have done, and for all that you will do in the future, to make Arbonne a success. It will take all of us, working together, to achieve our goals. Truly great organizations, in general, and Arbonne in particular, achieve their greatness because many talented individuals are focused on contributing toward common objectives. As we all heard at GTC this year, “we are better together.”
Sincerely,
Members of the Board of Directors Arbonne/Natural Products Group
Please note: This e-blast is being sent to all VPs, in all countries.