StemTech Filed For Bankruptcy What The Heck? More Info here…
StemTech International was started in 2005 by two gentlemen by the names of Christian Drapeau and Ray Carter.
The business is presently based out of Florida and operates in the nutrition MLM niche.
This company had unique products compared to the other companies out here…
Alexa traffic estimates for the StemTech website within the last year specify a consistent month- to-month decline in business.
In 2016 – StemTech’s gross revenue was $43.5 million, down from $52.5 million in 2015.
On February 2, 2017, StemTech filed for Chapter 11 bankruptcy.
In their Chapter 11 filing, StemTech named multiple creditors and assets of between one and ten million dollars.
The amount StemTech presently owes its creditors is in the neighborhood of approximately $5 million dollars.
The chief unsecured amounts owed to creditors are as follows:
- Andrew Paul Leonard (amount disputed) – $1.6 million
- Wilhelm Keller (loan) – $772,000.00
- Cerule LLC (raw materials supplier,amount disputed) – $685,838.00
- Marinova PTY LTD (raw materials supplier, amount disputed) – $554,000.00
- Nixon Peabody (legal services) – $163,183.00
- Chelsea Investments (rent) – $151,450.00
- Hollins & Schechter (legal services) – $150,605.00
- Federal Express (shipping) – $148,537.00
- American Express (credit card fees) – $135,348.00
- Andrew Goodwin (loan) – $100,000.00
- Hutcheson Bowers (legal services) – $84,851.00
- Berkowitz Pollack (accounting services) – $94,407.00
- Energy Tools International (inventory) – $90,173.00
- United Data Technologies (IT consulting) – $58,690.00
- Lozeau Drury (legal services) – $58,000.00
- Fusion Packaging (raw material supplier) – $38,208.00
- Environmental Research Center (settlement) – $36,792.00
- AIDP Inc. (raw materials supplier) – $32,440.00
- Broad and Cassel (legal services) – $29,973.00
- California EPA (settlement) – $21,000.00
The reasons named for StemTech’s bankruptcy are below:
- a 2008 lawsuit filed by Andrew Leonard for $1.6 million – StemTech lost the appeal last year:
“(Andrew Leonard) has vigorously pursued collection efforts.
These efforts have included an attempted levy against treasury stock and, more recently, the Judgment Creditor sought the appointment of a receiver for purposes of liquidating the patents and for an assignment of the equity interests in certain subsidiaries.”
- Cerule’s 2016 lawsuit for alleged non-payment of product supplied:
“The (Cerule) litigation has been costly and depleted cash which would otherwise be used for day-to-day business operations.
These costs, coupled with losses stemming primarily from foreign currency adjustments, have resulted in Debtor defaulting on the Converted Line and Term Loan, both of which are scheduled to mature on December 1, 2016.”
- failure to make lease payments:
“On January 30, 2017, the Debtor’s landlord served a three (3) notice of default and opportunity to cure relating to the Debtor’s corporate headquarters lease.”
At the time of this writing, there is no reference to StemTech’s bankruptcy on their website or social media profiles.
When I click on “Company News” on the StemTech website, I receive a message stating the headline feed is currently unavailable.
In addition, the very last post made on the StemTech Facebook page endorses their DermaStem Lift product and was written on February 2, 2017.
Anyway it was kind of a shocker honestly…
Alright if you have any questions, leave them in the comments below…
Follow me on Social media below:
Add Me On SnapChat:
Snap Chat I.D: MillDrive
See you at the top,
P.S. Sign up for my news letter below…