Comment and Opinion

Arbonne International

Another one nibbles at the dust (6/2/2010)
It hasn't quite bitten the dust yet, but there is always hope. You know that old riddle: "What have you got when a multi-level marketing company goes broke? A good start". Here is a letter sent to Arbonne International's "Independent Consultants":

Important Information From Arbonne
01/31/2010 09:43 PM
legalnotice@arbonne.com

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 www.NPGInfo.com/Notice. 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 www.arbonne.com. Videos and written materials are available for registered Independent Consultants and Preferred Clients within the "Internet Consultants" section of www.arbonne.com. We will continue to update this information as we move through this process.

Sincerely,

Kay Napier CEO,
Arbonne International, LLC