Arbonne Bankrupt

by LOUABBOTT on FEBRUARY 1, 2010

According to a post at Chapter11Library.com on January 27, 2010, Arbonne is upside down by more than $500 million …

Natural Products Group, LLC filed for chapter 11 today at the United States Bankruptcy Court in Delaware. The debtor is a manufacturer and distributor of personal care products. The debtor operates through Arbonne of Irvine, CA and Levlad of Chatsworth, CA. For the 12 month period ending November 30, 2009, Arbonne had approximately $378 million in revenue. For the same period, Levlad had approximately $73 million in revenue.

According to court documents, the debtor’s consolidated balance sheet reflected assets of approximately $286 million and liabilities of approximately $804 million. (as of 11/30/2009)

The largest unsecured creditor is listed as Wilmington Trust FSB with a bank loan claim of approximately $202 million.
# Debtor Name: Natural Products Group, LLC
# Year Filed: 2010
# Jurisdiction: United States Bankruptcy Court / District of Delaware
# Asset Size: 100,000,001 to 500,000,000
# Case Number: 10-10239

Natural Products Group, LLC is the holding company for Levlad, LLC  and Arbonne International, LLC.

Levlad is a leading manufacturer and marketer of branded natural and organic personal care products, under the brand names Nature’s Gate(R) and Nature’s Gate(R) Organics(R), which are sold through specialty retailers.

Arbonne, based in Irvine, California, markets its own brand of herbal and botanical personal care products through MLM (multilevel marketing).

Our sympathies are for the thousands of independent consultants for Arbonne who have counted on the company to have their best interests at heart.

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And a related article about Arbonne checks bouncing.....

Arbonne January Checks Bouncing…Coming Back Insufficient Funds?
Posted on 02. Feb, 2010 by Ty Tribble.

I ignored the first comment that suggested that Arbonne's January Bonus Checks bounced.  I didn't report on the second comment either, because I thought it might be someone who is a competitor or Arbonne hater.

I have now received a 3rd comment and the commenter has a MyArbonne Email address.

Here is the comment:

OK -- now I'm worried. My Jan. check from Arbonne was returned for insufficient funds.

If the consultant is not paid – this is the ultimate deal breaker as the sales force is the foundation of the company. I was optimistic after listening to the videos and information on the Arbonne website about the restructuring, but don't know if I can continue to align myself with a company that continues to over promise and under deliver.

Arbonne’s words
You can fully expect Arbonne to maintain normal business operations throughout the restructuring process, with no disruptions to our relationships with our Independent Consultants, customers, employees, or suppliers. Likewise, you and your fellow Independent Consultants can be confident that your compensation from commissions and overrides is secure.

Yet they have hired Duran Duran to play at the National Training Conference. HMMMMM....

Update: The Arbonne consultant sent me confirmation of the insufficient funds check. (Yes I saw proof.) It was nearly $1200 returned for insufficient funds.  This is no rumor. There is good news and bad news.  Bad news is that she is being told that the banks froze the accounts for a 24 hour period, causing the check to bounce.  Good news is that she was told that a new check plus bank fees will be sent out.  

Maybe most important is her sadness with regards to the "spin and hype" about this serious situation.