Neways
| Type | Private |
|---|---|
| Industry | Multi-level marketing |
| Predecessor(s) | Images and Attitudes |
| Founded | 1992 |
| Founder(s) | Thomas and Leslie D. Mower |
| Headquarters | Springville, Utah |
| Key people | Scott St. Clair, CEO Chris Crump, Chief Counsel Jennifer Wolbers, VP, Sales and Marketing Ted Rock, COO |
| Website | www.neways.com |
Neways International is a privately held American multi-level marketing organization that manufactures and distributes personal care products, nutritional supplements, and household cleaning products and has a presence in more than 23 countries.[1] Neways is headquartered in Springville, Utah. The company claims that its products are chemically safer than other brands.
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[edit] Company history
Neways, originally named Images and Attitudes, was founded on June 9, 1987 by founders Thomas and Leslie D. Mower. The company was renamed to Neways in 1992 with its original manufacturing facilities in Salem, Utah. Neways corporate headquarters was moved to Springville, Utah in 2003, with the main manufacturing facility remaining in Salem. Neways was acquired November 8, 2006, by Golden Gate Capital, a private equity firm headquartered in San Francisco, CA.[2] Golden Gate Capital also owned Herbalife before taking it public.[3]. In November 2011, Neways was forced to refinance the company’s capital structure; restructuring was completed in January 2012. The company's primary owners are now private equity firm Z Capital Partners, L.L.C. and funds affiliated with S.A.C. Capital Advisors, L.P.[citation needed]
[edit] Products
Neways' stated goal is to help people maximize their health and beauty while minimizing their exposure to potentially harmful ingredients. With the input and oversight of the company’s independent Scientific Advisory Board, Neways has compiled a list of over 3,000 controversial ingredients that it believes should be avoided in product formulations. "By replacing mainstream products with Neways products in our three main product categories," according to the company, "people can transform their homes into Neways Healthy Homes."
Neways claims that it not only refuses to put potentially harmful ingredients into its products, but it strives to add "wholesome, gentle, health-enhancing" ingredients to every product it creates.
Neways offers more than 200 products in three main categories: Personal Care, Household, and Health & Wellness.
[edit] Controversies
In 1993 Neways was forced to recall a weight loss product as it was found to contain a dose at medical levels of the prescription diuretic furosemide [4].
In 2004 Neways was convicted on criminal charges relating to the distribution of a pharmaceutical product containing human growth hormone, which is illegal to distribute without a prescription [5].
In 2005, the founders Thomas and Leslie Mower were convicted of tax fraud concealing over $4 million US dollars of revenue. They also presented false loan documents and lied to an IRS special agent. [6] In 2006, Thomas was sentenced to 33 months in prison to be followed by 3 years supervised release and ordered to pay a $75,000 fine in addition to paying prosecution costs. Leslie was sentenced to 27 months in prison to be followed by 3 years supervised release and ordered to pay a $60,000 fine.[7]
In 2008, Neways Japan Ltd. was forced to suspend signup of new distributors by the Japanese government during a three month period (February 21 to May 20) for deceptive conduct occurring in 2006, after distributors lied about competitors products, claiming they would cause cancer.[8]
[edit] References
- ^ Neways Investing Activity - Golden Gate Capital
- ^ Press Release > Golden Gate Capital Acquires Neways International SPRINGVILLE, Utah (November 8, 2006) News - Golden Gate Capital
- ^ Herbalife Investing Activity - Golden Gate Capital
- ^ [1]-"The Food and Drug Administration today announced that Neways Inc., of Salem, Utah, is recalling its "Quickly" weight-loss product"
- ^ [2] - "Guilty plea for Neways on hormone"(OCTOBER 2003)
- ^ #131: 3-18-05 UTAH CORPORATE EXECUTIVES AND LEGAL COUNSEL CONVICTED OF TAX FRAUD FRIDAY, MARCH 18, 2005 - WWW.USDOJ.GOV
- ^ Corporate Executives and Legal Counsel Sentenced for Tax Fraud - FY2006 Examples of General Tax Fraud Investigations - Internal Revenue Service United States Department of the Treasury[dead link](Wayback [3])
- ^ DPJ vice leader received donations from multi-level marketing firms+ October 18, 2008 (Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Oct. 18_(Kyodo) - Technology Marketing Corporation
