Friday, February 19, 2010

Important Info on 3 Cosmetic Companies

Isn’t it wonderful to know that our company is so stable and secure???

Arbonne Bankruptcy - January 27, 2010, Arbonne filed for Chapter 11 Bankruptcy. Details at

please scroll down to see the letter sent to all Arbonne Consultants.

(Max Factor and Prescriptives in the US are both gone now.)

Estee Lauder to close Prescriptives

By Laurelle Gilbert | Posted: Fri 18 Sep 2009
Beauty brand Prescriptives to close early next year

Estee Lauder the US beauty company that owns the Prescriptives brand (as well as 30 other beauty lines including Clinique, Origins and Bobbi Brown) has announced today that it will close the company.

President and CEO of Estee Lauder Fabrizio Freda told WWD, 'We believe that the difficult decision relating to Prescriptives will allow us to redirect our resources to key strategic imperatives where we see the highest growth potential.' Prescriptives will close on 31st January 2010, after that date, the brand famous for it's cult skin care and custom blend make-up range will no longer be produced but will remain on sale until supplies are sold out.

From Times Online June 5, 2009

P&G phasing out Max Factor in America
The Hollywood movie studio make-up brand will disappear from US stores early next year as P&G focuses on CoverGirl line
Christine Seib in New York

Max Factor, the original Hollywood movie studio make-up brand, will disappear from store shelves in the US early next year.

Procter & Gamble, the Cincinnati-based owner of the century-old brand, said that Max Factor no longer had a sufficiently significant market share in America. P&G will focus its resources on the more popular CoverGirl line.

Max Factor has only 1 per cent of the US makeup market and unlike similarly-priced rivals is not stocked by major drug store chains such as Walgreens, CVS and Rite Aid.

The makeup is far more popular overseas, including the UK. At present, Max Factor outsells CoverGirl with $1.2 billion in sales each year compared to $1 billion for its newer rival. But CoverGirl has increased its US market share every year for the last seven years while Max Factor has stagnated.

Even bringing in big guns such as reknowned makeup artist Pat McGrath, Baywatch babe Carmen Electra and supermodel Gisele Bundchen in recent advertising campaigns failed to revive Max Factor’s fortunes in the US. .


January 29, 2010

Dear Arbonne Independent Consultant,

You are a valued member of the Arbonne family, and we want to make you aware of an important action we have taken to strengthen Arbonne financially and ensure that our company is well-positioned for the future.

On January 27, 2010, Arbonne, along with our parent company, Natural Products Group, LLC, and related entities, filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code to implement a "pre-packaged" debt restructuring plan. This plan will reduce our outstanding debt obligations by more than 80%, which will lower significantly the amount of cash we spend on principal and interest payments. We can use this cash to invest in building our business.

You can fully expect Arbonne to maintain normal business operations throughout the restructuring process, with no disruptions to our relationships with our Independent Consultants, employees, or suppliers. Likewise, you and your fellow Independent Consultants can be confident that your compensation from commissions and overrides is secure.

Our practices in the field remain the same. We will continue to provide you with innovative programs and incentives as well as state-of-the-art product technology, the very latest training methods and the most advanced support tools available today.

As numerous companies have demonstrated during this difficult economic cycle, using this type of legal process can be an effective way of achieving a fast and efficient debt restructuring with minimal disruption to the business. In fact, because we have already received the approvals needed from the Company's lenders for this plan, we expect to complete this process within 45 to 60 days.

As part of this process, the Company has prepared a legal document known as a Notice of Commencement. The distribution of this Notice to a wide range of parties is customary. We are required to send it to anyone who may have a claim in the Company's reorganization proceedings. This Notice includes important information about the restructuring, including key dates and deadlines. To view this Notice and related information, please go to If you are unable to access these materials on the Internet, please call (877) 788-2814, toll free in the U.S. and Canada, for further assistance.

Additional information about the reorganization is available in "The Company" section of Videos and written materials are available for registered Independent Consultants and Preferred Clients within the "Internet Consultants" section of We will continue to update this information as we move through this process.


Kay Napier
CEO, Arbonne International, LLC


  1. yeah I knew about Max Factor. I think they were popular "back in the day" but sort of lost it along the way somehow.

  2. WOW. I didn't know about Arbonne. I heard a year ago that they were really struggling, but I had no idea they were in this bad of shape.

    I also didn't know about Prescriptives.

    Max Factor I had heard about.

    But I agree that it really speaks well to Mary Kay. We are in such a great financial position.

  3. Max Factor I knew about but the Prescriptives line is shocking I thought people were buying it. Cover Girl has big names so I expect them to do well and they are carried in all of the drug stores. Mary Kay is in a good position because they only accept credit cards and money orders and always have so they are debt free. I feel sorry for some of the directors and consultants who were cajoled into joining Arbonne and leaving Mary Kay though. Some of them will ride it out or come back to MK its their decision or they will get out of selling totally. This is not a slam against Arbonne by the way I think its the economy as a whole.

    Max Factor only had one percent of the market!
    Wake up MK consultants here is your chance to grab that market (the glamour market) since these companies dont concentrate on skin care that much. After reading all of this it goes to show that Mary Kay was smart to focus on skin care because glamour you can go anywhere. Good Read.


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