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Editors opinon note formed from 5 people midlevel not statistically significant: The company was more than $800 million in debt while Arbonne distributors were telling their prospects that the company was debt free.

Editors opinon note formed from 3 people not statistically significant: Their top leaders were asked to take a pay cut in November.  Opinion: this was to stall Bankruptcy of course.

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. Opinion: This part of news release was to cover the owners pulling $200 million in dividends in 2005.  If they had left that $200 million in the company no bankruptcy?  Probably!

The company's net sales began to fall in 2007-2009 due to a loss of direct marketers and downturn in the economy.  Opinion: Change of a popular top Arbonne Exec.... other MLM companies did not go under.  Why these owners?  Look at Tupperware and their brillant GOLD parties!  The rumor of shaky financials has been floating around for a year so distributors had to hear them if I did. They have started a Debt Reduction Program..slow show too late to stave off  Bankruptcy?

While the bankruptcy wipes out the initial investors, Natural Products Group paid them $200 million in dividends in 2005, according to a company statement dated Jan. 4, 2006.


Bankruptcy Details: PR Release Arbonne


Ed. Opinion: one good thing the slimeballs below didn't do!


---- Original Message -----
From: "Inside" <> 
To: <>
Sent: Tuesday, November 02, 2004 9:11 AM
Subject: Important: Please READ Bankruptcy

We'd like to follow up the email you recently received regarding VarTec and Excel to address some of the questions you may have about these changes.


What does the bankruptcy filing mean?
Answer: Under Chapter 11, VarTec will operate under a reorganization plan that will reinvigorate the company, enhance profitability and put it in a better position to compete in the telecommunications business. The bankruptcy case will be supervised by a Federal Bankruptcy Judge.  VarTec  will be authorized to continue providing telecommunications services to its customers and offer services to new customers.

Why did VarTec file for Chapter 11 bankruptcy protection?
Answer: Because of the rapidly changing and competitive telecom industry, VarTec's businesses have not been able to generate sufficient cash flow to continue operations without protection from the Bankruptcy Court.  Other factors include the company's debt level, the regulatory climate and the competitive pressures in our reseller business.

Where was this bankruptcy filed?
Answer: The petitions for protection under Chapter 11 of the U.S.
Bankruptcy code were filed in the Northern District of Texas on November 1,
2004.  The joint administration case number is 04-81694-11-SAF.

What portions of VarTec are covered by the bankruptcy filing?  Answer:
All domestic operations including:  VarTec Telecom, Inc. and all  of its existing domestic subsidiaries (Excel Communications Marketing, Inc.,  Excel Management Services, Inc., Excel Products, Inc., Excel Telecommunications, Inc., Excel Telecommunications of Virginia, Inc., Excel Teleservices, Inc., Excelcom, Inc., Telco Communications Group, Inc., Telco Network Services, Inc., VarTec Business Trust, VarTec Properties, Inc.,  VarTec Resources Services, Inc., VarTec Solutions, Inc., VarTec Telecom Holding Company, VarTec Telecom International Holding Company, and VarTec Telecom of Virginia, Inc.) None of VarTec's international subsidiaries are involved.

How will the filing of Chapter 11 bankruptcy impact subsidiaries?
Answer: The impact on the day to day operations for customer service should not be material. Chapter 11 bankruptcy authorizes a company to continue operations, free from financial claims from creditors during reorganization. This filing will let the company reduce its costs and obligations to more profitably compete in  its core business.  The goal is to be a lean, efficient business in line with the current market.

What about international operations?
Answer: None of VarTec's international subsidiaries are included in the bankruptcy filings. The daily business operations of foreign subsidiaries of VarTec are not affected by the filing in U.S. Bankruptcy Court.

Does bankruptcy mean the company is going out of business?
Answer: No.  Many companies use Chapter 11 to restructure debt and commitments to become a stronger company.  VarTec is evaluating strategic business options working hard to maximize value for its creditors.  The company intends to efficiently operate all of its retained businesses, and emerge from this in a much better position to compete in the telecommunications business.

What does this mean to independent representatives?
Answer: VarTec will no longer maintain the Excel sales channel. Agreements between Excel Telecommunications and independent representatives will be terminated as part of the bankruptcy filings. To help give Excel independent representatives a viable alternative, we are collaborating with Shaklee Corporation to provide a viable alternative for Excel IRs.  All IRs are encouraged to consider joining Shaklee.  Excel has agreed to provide Shaklee with the services of people and systems support (like EmpowIR) for a transition period for those Excel IR's that join Shaklee. The Excel IRs that join Shaklee will retain their lineage and genealogy currently in the EmpowIR system.

What about the commissions that independent representatives are supposed to receive under Excel?
Answer: Under the Chapter 11 bankruptcy filing, the MLM sales and compensation structure contracts are all subject to a motion to reject, and independent representatives will no longer receive commissions from VarTec or Excel.

How can you just end an agreement like this?
Answer: Under federal bankruptcy rules, a company can reject contracts, leases and other agreements in place before the filing of Chapter 11.  Vendors, including independent representatives, can submit a claim with the Bankruptcy Court.  You should consult your own counsel in making any claims.

What will happen to our customers?
Answer: We will continue to provide telecommunications services to our current customers.

What is Shaklee Corporation?
Answer: Shaklee is a leading multi-level marketing company in the health and wellness industry and has been for nearly 50 years.  Shaklee is based in Pleasanton, California and operates in Japan, the U.S., Mexico, Malaysia and Canada, and has over 700,000 members worldwide. Ed. Opinion this didn't work, different products and complan...too big a leap! For more information, go to

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