Possibly a similar situation to Arbonne’s bankruptcy. This is a dark cloud hanging over the Neways distributors, hopefully they will have solid news soon.
Golden Gate Capital Corp.’s Neways, a maker of personal care and household products, is weighing restructuring options that would give control of the company to creditors, said three people with knowledge of the talks.
Neways, which defaulted on about $235 million of second- lien loans that matured last week, is considering a bankruptcy filing or an out-of-court financial restructuring that would likely lead to Golden Gate losing control, said the people, who declined to be identified because the talks are private.
Creditors that would take over the company include SAC Capital Advisors LP, Z Capital Partners LLC, Silver Point Capital LP and American Capital Ltd., the people said. Golden Gate sought bankruptcy protection for another portfolio company, Orchard Brands, in January after attempts to sell the retailer failed.
“Neways has been actively engaged in negotiations with its lenders for several months and we hope to reach a mutually agreeable resolution as expeditiously as possible,” Meaghan Repko, a spokeswoman for the company, said in an e-mailed statement. “It remains business as usual at Neways and our operations will continue as normal throughout this process.”
Neways, which distributes health and beauty products in nearly 30 countries through a global network of about 500,000 independent distributors, was acquired by San Francisco-based Golden Gate for an undisclosed price in 2006. The Springville, Utah-based company has struggled with operations, including at its business in Japan, according to the people.
I’m more shocked that many people publish an article like this without doing their own investigations!! So if I’m correct than there are “three people with knowledge of the talks” who have talked about this? One newspaper published the article, and all the others followed without checking the source???
Unbelievable how people can change words. Fact is that Neways is having negotiations with its lenders to refinance the company’s capital structure. Nothing special. In fact, Neways is not going away, they are getting better! They are going through a restructuring to allow for investment in the future. Neways is hopeful that the parties involved, Golden Gate Capital and the lenders, will complete the process outside of US court system.
Neways is opening Korea next month, and Thailand early 2012. There is excitement about the launch of some new products next year too (like a brand new weightloss system).
Anyway, you can always check Neways press release too : http://www.newaysinnews.com/2011/11/neways-in-active-and-constructive-discussion-with-its-lenders-to-refinance-capital-structure/
or Neways website that has been created for this ‘challenge’ : http://www.neways.com/movingforward/
Neways is moving forward….
Vincent, the site you linked says just about the same thing as the article. If you look in the FAQ section they are obviously preparing people for a possible Chapter 11 Bankruptcy filing.
Oh man, that’s too bad. Too much overhead. Right now it’s about low overhead and small monthly costs. In my opinion. 🙂