Neways Australia – Impact of Potential Bankruptcy
December 2nd, 2011
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by admin · Filed Under: Network Marketing - News · Uncategorized
Golden Gate Capital Corp, the owner of network marketing business Neways, may hand over control of the company to creditors.
This is one of several options being considered in light of the beleaguered Neways’ catastrophic default on $235 loans recently.
The Utah based Neways is a maker of personal care and household products, and has experienced sales declines in recent years, particularly in the key Japanese market.
Founded by husband and wife team, Tom and Dee Mower, Neways was sold to Golden Gate in 2006 as a result of problems being experienced by the Mowers.
If Neways declares bankruptcy Golden Gate will lose control of the company, which in turn could pass to creditors, which consist mainly of other lenders.
In Australia, Neways has a long history, dating back to the eighties. Australia has represented a solid market for the company, but news of the possible bankruptcy will have a negative effect on the distributor force.
Interestingly Golden Gate also purchased Herbalife and saw their investment increase ten fold. No such luck with poor old Neways.
There is no ‘bankruptcy’. “Our business remains profitable, the revenue stream is healthy and we are operating at some of our highest efficiency levels since the Company’s start nearly 25 years ago.”
You can read the facts here…..
http://?www.newaysinnews.com/2011/?11/?neways-in-active-and-constr?uctive-discussion-with-its?-lenders-to-refinance-capi?tal-structure/
Sorry – the URL in the previous post had some spurious characters…
Here is the correct URL…
http://www.newaysinnews.com/2011/11/neways-in-active-and-constructive-discussion-with-its-lenders-to-refinance-capital-structure/
I am of the opinion that Neways Australia has put their lead distributors through enough to have all ready shakin’ the confidence. This information will only confirm it. http://www.bloomberg.com/news/2011-11-17/golden-gate-s-neways-said-to-weigh-options-including-bankruptcy.html#
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