Arbonne International CEO Kay Napier takes Charge and Protects the Arbonne Family Successline

Most Current Court Information…

Arbonne International, CEO Kay Napier takes charge and protects the Arbonne Family (distributor’s) Successline. Kay Napier is a great business woman, and her move to protect the distributor’s income line, shows how much she believes in the current Arbonne distributor base.

MLMWatchDog.com

Ty Tribble has also bee following this story over at the MLMBlog.com

Kay Napier shot a great video on exactly what the Arbonne Restructuring means to the Arbonne family.

Kay Napier

Here is a little of what Kay Napier explained on this situation.

” On January 27, 2010, we began implementing a “pre-packaged” debt-reduction plan that will strengthen Arbonne financially so we can continue to invest in our business and ensure that the company is well-positioned for the future. This plan will reduce our outstanding debt obligations by more than 80 percent, which will lower significantly the amount of cash we spend on principal and interest payments.

We developed this plan with the support of our lenders. To implement it, Arbonne, along with our parent company, Natural Products Group, and Levlad, an affiliated manufacturing company, have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. ”

Here is the Bankruptcy filing. As you can see it is not Arbonne that causes this situation. Arbonne management as done exactly what is expected and the loyal distributors have continued to build this great brand.” Read On…

The other great woman at Arbonne is long term president Rita Davenport. These two women love Arbonne, and the family who has built it strong.

Rita Davenport
Here is the letter Kay Napier sent to the valuable Arbonne customers.

Here is a great document for FAQ on the Arbonne Restructuring.

Read the official press release here.

Living An Epic Adventure,

Troy Dooly

Spread The News!

17 thoughts on “Arbonne International CEO Kay Napier takes Charge and Protects the Arbonne Family Successline”

  1. Wonderful blog! I found it while surfing around on Yahoo News. Do you have any tips on how to get listed in Yahoo News? I've been trying for a while but I never seem to get there! Thanks

  2. Julie,

    Thank you for your kind words. Our goals are to always report based on the facts at hand.

    your comment is dead on, and I firmly beleive based on the family culture and closeness of the Arbonne family inside the cormprate office and outside in the field will allow this company to not just restructure, but to become a rock solid success story in all of direct selling.

    Keep us posted,

    Troy

  3. Troy,
    I am pleased to find and read your blog, not because I agree with your above opinions but simply that you have reported accurate and factual information as provided in the BK filings.

    As in all business(es) and in life there are examples of men and women who possess the attributes of truth, integrity and character. On the otherhand, there are those who lack these moral fibers and prey on others.

    In the end, it doesn't matter what we all "do" for a living, it is a matter of who we all "are" while we are living. A job title or a paycheck (or lack thereof) do not determine who we are as an individual.

    I applaud the business decisions made by Kay Napier and the unwavering strength of character of Rita Davenport as well as former, current and future Arbonne consultants. I, too am excited about the restructuring process of Arbonne – it is the perfect example of yet another company brought to their knees and nearly destroyed by the greed of investors, but this time there remains a beating pulse.

    I, as an Arbonne consultant have chosen to remain with this company.

  4. Cheryl,

    Give all the Arbonne Ladies my best when you see them!!!! We think you rock, and it will be great to do a huge review on the company.

  5. Troy, your comments and insight have been helpful. I have been an Arbonne consultant for 4 years and am looking forward to many more years with the company. My belief in the products and the company has never waivered. I am more committed now then ever. I have read Ty's blogs over the last week with an open mind. I understand how people are upset and concerned. Everyone needs to educate themselves on the facts and do what is right for them and their family. There will always be naysayers and many of them like the Arbonne products.
    As far as telling new prospects about the restructuring…there is only one right answer…absolutely put it out on the table and tell the truth. Guide them to the Arbonne site and third party sites like yours and have them make their own decision. That is the only way to build trust and a solid team. There is nothing to hide

  6. Thanks Troy,

    I too respect Ty's blog and putting the information out there. It helps people make an informed opinion.
    Thank you for the encouraging words.
    I am looking forward to following you through this process.
    Cheryl

  7. Here is the rest of my original reply, not sure if it did not go through or it was edited.

    As far as telling new prospects about the restructuring…there is only one right answer…absolutely put it out on the table and tell the truth. Guide them to the Arbonne site and third party sites like yours and have them make their own decision. That is the only way to build trust and a solid team. There is nothing to hide; everything is out there for people to make an educated choice.
    I am completely confident in the company, the outstanding products, Kay and the leaders in the field. I met Kay this weekend and spent time training with Kay and top ENVPS. Their conviction and leadership is inspiring. Kay’s determination and guidance will bring Arbonne to the next level and beyond. She is an enormous asset to everyone in Arbonne as well as the DSA.
    I will be in Phoenix with Rita and all the remarkable leaders next week. I am proud to be a part of Arbonne!

  8. Cheryl,

    Thank you for coming by and commenting.

    Ty is an astute leader, and I respect his insights even when we do not see eye to eye on issues, which is why I linked to his and Rod Cooks opinions. I beleive folks need to have everything at hand in order to know what is being said.

    You hit the nail on the head. If the reps take the high road, realize this is part of the business, and are willing to rally behind the leadership and continue to build, then the company will not only restructure it will be stronder than ever in 18 to 24 months.

    I have two volumes of some of the most negative information ever published on any company… A.L. Williams during the 1980's. Art put a whole team on finding everything written, so we could pull these out when needed, and answer all of our critics. Today, A.L. Williams/Primerica pays out over $600 million a year in commissions and may very well be the most profitable MLM company in history.

    I am proud to stand side by side with all of the Arbonne Family because it is full of some of the greatest people I have ever met.

    Let me know if I can ever serve you or your team.

    Living An Epic Adventure,

    Troy

  9. Heather,

    We will be reaching out to Arbonne Corporate to do a complete review of the company as they emerge from the restructuring. I would love to use as an example in the review, your own story. Please contact me offline at TroyDooly@MLMHelpDesk.com.

    I have no doubt the future is bright and strong.

  10. Kenny,

    I know how busy you are serving your team, so thank you for stopping by. Ty is a Rock Star in this profession and has great insight.

    I came to my conclusion more than likely from a different view than ty. that does not make my opinion better than his, just different because I have lived through something worse than bankruptcy, I lived through and succeed in building a team while our company was being sued by several State Insurance Commissioners, and having bad press written and on the front page of every major newspaper in the country… In then end we won. The way we did it was just like Arbonne is doing it, we took the situations and started our presentations with the news articles and court cases. I agree its tough when this happens to a company. However, several things come to mind.

    1. With a company who creates a video sharing the insights as to what is going on, it becomes the greatest recruiting story ever. People love the underdog, and love folks who stand for something.

    2. If the Arbonne Family prints off the filing, they can show where Arbonne earned $230 plus Million last year, had a net profit of $30 plus million. It was not the Arbonne division that causes the parent company to file for bankrupcy, just like it was not Primerica's fault Citi Group leveraged themselves to much and had to take a handout from the Government.

    Like Primerica, Arbonne will come out of this stronger than ever.

    3. When lenders are willing to forgive their debt ($680 plus Millions of dollars) for a diluted equity state in the new company which will include Arbonne and their little sister company who creates organic products, and will be worth less than $300 million, it shows the lenders believe in the current leadership team, products and most of all the field force.

    Arbonne has so many top rated products and a wonderful research and development team, untainted brand, and most of all a database of some of the most respected, well trained distributors in Direct Selling. It would have been more advantageous for the lenders to have forced the company into Chapter 7, selling off the everything splitting up the cash, and writing off the rest.

    However, instead, they are willing to risk it all, and move to a whole new level.

    I am looking forward to writing a huge review on this company this year.

    Although time will tell, I can say from knowinf several of the top field leaders in Arbonne, this company is not starting over, it is just restructuring their strengths and shedding the weaknesses.

  11. Great points Troy and thanks for sharing. I continue to enjoy your unbiased reporting. It would be easy to bash a company and cause a stir because of a bankruptcy. I do agree in part with what Ty is eluding to. When looking for new reps for the company or even selling the product, Arbonne reps may find themselves in a defensive position from the outset…not a good place to be.

    Some of their current reps will leave for sure out of panic and it could cause a snowball affect of distributors to look for a new home. Hopefully for Arbonne's sake their leadership can maintain confidence in their ability to get through this. For most people the perception is that Bankruptcy is never a good thing.

    Like you said Troy, the company knows where their assets are…the distributors…and that is good to hear.

  12. Thank you Troy,

    Arbonne CFO Mark Lehman said, "That when Kay and I first met with the lenders, when this first came up, aside from indicating their support for Kay being here, they were also very positive about the business and their one comment to us, 'Tell us what you need to be successful.' I think that is an important statement and an important show of support for all of us."

    We are very excited about the future and our 30th anniversary & new product launch celebration in March! Hold tight…very exciting things await Arbonne consultants & clients. Personally, I can't wait!

    Appreciate your feedback and I'll be happy to keep you posted.

    Heather

  13. Heather,

    Having met some of the most wonderful people (mostly women) in the world through this company, it is easy to see why Arbonne was making money and more importantly a profit. From Reta all the way down to the newest Arbonne family member, the passion you all have for the products, leadership and most of all each other is second to none.

    And although there are some who will disagree with me, having run a M&A firm in my past I have firsthand experience in what goes through the minds of lenders during times like this. So when I saw the lenders were willing to forgive 85% of the debt for deluted ownership in the company, it speaks volumes, and tells me…

    They believe in more than just the leadership of this company, like Kay Napier and Reta Davenport, they believe in the field force!

    Please keep us posted and if I can help in any manner please reach out.

    Living An EPic Adventure,

    Troy

  14. Troy, your input was interesting and refreshing! As an Arbonne independent consultant of 5 years, my conversations over coffee about the Arbonne opportunity will not change. I will be open about what has happened and share with people the truth about Arbonne’s financial restructuring and my belief in the Arbonne opportunity will continue to be rock-solid.

    Arbonne CFO Mark Lehman explained the benefits: Arbonne will have the support of their lenders as investors in the company who hope to make a profit. Converting Arbonne’s debt to equity will make Arbonne stronger financially and will enable Arbonne to focus a lot more on international growth and upgrading the product line.

    Arbonne has had 30 years of success and I’m very excited about the future!

  15. Ty,

    Thank you first of all for stopping by. I know how busy you are and this is cool.

    You bring up some valid points. However, part of the restructuring and pre-packaging may have including using $20 million to pay off or down some of the unsecured debts or other costs of restructuring.

    But when you look at just the Arbonne division, they were not the issue. They have been making a profit year in and year out. However, it is the parent company NPG which was using the profits generated and had no background in MLM. They saw the big money rolling in and used it for dividends and other costs. And if we go back before Harvest Partners, the same thing was going on.

    Arbonne has been a money maker, and the Equity Partner used it all instead of paying down the debt load from the leverage buyout.

    But Ty we are both on the same page when it comes to the distributors.

    Folks, if you have not been to Ty's blog, he runs one of the best in the business…

    Living An Epic Adventure,

    Troy

  16. Hey Troy, I sure hope you are right with your predictions. Everyone is talking about whether or not Arbonne is solid enough to make it. Of course that is important, but my concern is for the viability of the individual consultant. As she sits across the table from someone at Starbucks, will she be able to overcome this bankruptcy issue. Does she address it right up from and hope for the best? Does she leave it out hope that the potential consultant thinks it's no big deal when she reads about it online?

    That's issue one. Issue two is with the fact that even with Kay, the company has burned through $20 million in cash over the last 58 days and had to borrow $20 million as part of the restructure. That is not sustainable.

    I will certainly be praying for all of the Arbonne consultants.

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