Neways International Bankrupt?
Only 10 hours ago this article was published Golden Gate’s Neways Said to Weigh Options Including Bankruptcy.
At its peak, when still owned by founder Tom Mower Sr., Neways International reached a whopping $750,000,000 in annual sales. In 2006 Golden Gate Capital bought the then privately held, debt free company and has recently defaulted on about $235 million of second- lien loans that matured last week (11/17/11). Golden Gate is considering a bankruptcy filing or an out-of-court financial restructuring of Neways International that would likely lead to Golden Gate losing control, said the people, who declined to be identified because the talks are private.
That’s right just 5 short years ago Neways was the 5th largest MLM in history and today they are defaulting on loans and considering bankruptcy. What happened to this giant?
How Will Neways Next Move Effect You?
Life is ironic. As I read this article I, Dani, find myself concerned for those 500,o00 distributors who have committed their lives to promoting what was a great company with a passionate mission to change the planet. Now we all know that even if Neways does file bankruptcy, it may not be the end but this is still devastating news for any distributor especially those who have been with Neways for 20+ years. They have all ready experienced one ownership change and the challenges that come along with a private equity firm buying up companies to take them public, make a fortune and then sale them again.
I am surprised by my emotions as I would have thought the excitement of another “competitor” fallen would be cause for celebration but I know the dedication it takes to become successful in networking marketing & my heart goes out to each of person caught in the middle of any company collapse.
Non the less, I am thankful every day for the network marketing industry and the opportunity it offers anyone from any walk of life to achieve true success, no matter the circumstances.
Red pill or Blue pill,
Dani Walker
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Good article.
Not keen on the cheesy SISEL plug at the end of it.
Thanks Ben. Many of my personal thoughts are “cheesy” but that was what was going through my mind after reading the article.
Update on Neways International Possible Bankruptcy:
As the post link I used has been deleted from The San Fransisco Chronicle, here is a good link to read more about Neways options to default or file bankruptcy http://www.bloomberg.com/news/2011-11-17/golden-gate-s-neways-said-to-weigh-options-including-bankruptcy.html#
Neways International is obviously doing everything they can to keep this “restructuring” private.