Natural Products Group LLC, owner of direct-sales skin care and cosmetics brand Arbonne International and natural personal care brand Nature’s Gate, filed for Chapter 11 bankruptcy protection in Delaware on Wednesday.
Natural Products Group opted for Chapter 11 to embark on a restructuring plan approved by 90 percent of the company’s bank debt holders that would cut its debt obligations by more than 80 percent. In court documents, the company’s total liabilities are listed at $804 million and its total assets at $286 million. The bankruptcy is expected to last 45 to 60 days, according to Natural Products Group.
“This is a major milestone in our strategy to position the company for continued growth and increased profitability,” said Kay Napier, chief executive officer of Arbonne International and president of the Natural Products Group. “I am deeply gratified by the enthusiastic support of our lenders to reduce the company’s debt substantially and increase our financial flexibility.”
New York-based private equity firm Harvest Partners formed Natural Products Group as a holding company for its acquisitions of Arbonne International and Nature’s Gate in 2004. Harvest Partners, along with other investors, paid $93 million for the acquisitions and initially was rewarded with rapid revenue increases until growth began to recede in 2007 due to attrition in Arbonne’s direct-sales force and the souring economic conditions.
For the year ending Nov. 30, 2009, Arbonne registered revenue of $378 million, and positive earnings before interest, taxes, depreciation and amortization of $38 million. Nature’s Gate registered $73 million in annual revenue and an EBITDA loss of $6 million. Together, they employ nearly 870 people.
Natural Products Group stated that Arbonne International and Nature’s Gate would continue with normal operations during the bankruptcy. The company said it has sufficient cash on hand to meet ongoing business responsibilities, such as paying staff, compensating direct-sales consultants and marketing products. To help support working capital needs, its lenders have agreed to provide the company with a $20 million credit facility, the firm noted.
Nature’s Gate, which is the brand name used by Chatsworth, Calif.-based Levlad LLC, was founded in 1972, and was a pioneer of the natural personal products sector starting with Rainwater Shampoo concocted in the herb shop of founders Leo and Vladimir Weinstein. Arbonne International, which is based in Irvine, Calif., and known for its Swiss-formulated herbal and botanical skin care products, was founded in Switzerland in 1975 by Petter Mørck and established in the U.S. in 1980.
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)
@badgalriri’s @fentybeauty launch in September was a massive success on social media, powering $72.9 million of earned media value, according to Tribe Dynamics. The brand’s foundation offering sparked conversations about diversity in beauty, launching the growth of emerging influencers and propelling the brand’s support on social media. Today, #fentybeauty won Launch of the Year at the WWD #BeautyIncAwards. (📷: Chema Moya/EPE-EFE)
@marianna_hewitt has become one of the most influential content creators in the beauty space, with almost 800,000 Instagram followers and a newly launched skin care line called @SummerFridays. Today, she was awarded Influencer of the Year at the WWD #BeautyIncAwards. (📸: @sophiachabbott )
As shopping behaviors evolve, the retail experience must follow. Head over to retail experts @colliersinternational’s Knowledge Leader series to read more about the shift in our shopping era. #colliersretail #lovecolliers
@prada opened a pop-up club, called Prada Double Club, in collaboration with German artist Cartsen Höller at @artbasel Miami. Last night, guests – including @youngparis, @ritaora and even Miuccia Prada herself – gathered in a former ice factory where the pop-up is housed for a performance from @wyclefjean. Go to WWD.com for full coverage on all the exhibits, parties and more at #ArtBaselMiami. #wwdeye (📷: @lexieblacklock)
@louboutinworld and @disney are making magic once again, creating a set of shoe designs for the release of “Star Wars: The Last Jedi.” Louboutin designed a pair of shoes for each of the film’s four female leads: Rey (@daisyridrey), Vice Admiral Amilyn Holdo (@lauradern), Captain Phasma (Gwendoline Christie) and Rose Tico (@kellymarietran). The shoes will debut on Saturday at the L.A. premiere of the latest episode. #wwdfashion
Today at the #BeautyIncAwards 2017, WWD will be joined by beauty leaders from around the world as we honor this year's most innovative people, products, brands and places. Follow along here and on Twitter for live coverage from the exclusive event. #wwdsummits (📷: @elizaflorendo)
Exclusive: Beauty superinfluencer @marianna_hewitt is launching her first-ever skin care brand with her business partner @laurengores. Their new line Summer Fridays, which will be sold exclusively at summerfridays.com starting in January, is launching with just one product – a hydrating cream Jet Lag Mask. “We wanted to focus on one product that was amazing,” said Hewitt. Read the full interview on WWD.com. Link in bio. #wwdbeauty #wwdnews
Michelin star-rated chef PJ Calapa marks his first solo endeavor with today’s opening of @scampinyc –– the new Southern Italian restaurant located in Manhattans’ Flatiron District. The upscale yet welcoming environment matches the menu, which includes two types of scampi: traditional Italian langoustines in butter and the Americanized version with shrimp over pasta 🍤 - pictured here. #wwdeye (📷: George Chinsee)