Getbig.com: American Bodybuilding, Fitness and Figure
Getbig Main Boards => Gossip & Opinions => Topic started by: Norton on January 19, 2006, 12:35:21 PM
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The word on the street is Muscletech has filed for bankruptcy.
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Link?
Freak ???
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I heard they spent too much on their website. :-\
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The word on the street is Muscletech has filed for bankruptcy.
good for them
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The word on the street is Muscletech has filed for bankruptcy.
Need proof!
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Have no proof. Told by a lawyer. Maybe someone here can find more info. I couldn't but source is reliable.
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I told them to drop Kamali..........the dude is bad luck.
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I dunno, mate. Generally, a company this large doesn't get to the point of a bankruptcy filing without there having been some writing on the wall.
I don't see any way that MT's financial woes could've been kept secret from this crowd.
GetBig knows ALL.
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That's what i thought. Overwhelmed with litigation i suppose.
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This industry will be hurting if MuscleTech goes down. They seem to be one of the few companies willing to put out money into their athletes, a ton of ad revenue will be lost to the publications, not to mention title sponsorship of the Olympia thats some serious cash gone.
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The word on the street is Muscletech has filed for bankruptcy.
"word on the street" dipshit ::)
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"word on the street" dipshit ::)
That's right shit face.
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Nah if they where getting close to financial trouple the sighns would have been there, they would have pulled sponcership engagements at trade shows and bodybuilding shows, they wouldnt have launched a new product etc etc !!
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I heard MuscleTech is 5,970,000 mores bankrupt than MetRx.
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If this in fact IS true would it surprise anyone with their OUTRAGEOUS price on their products?
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The word on the street is Muscletech has filed for bankruptcy.
thanks for the heads up, man, i'm getting my ass over to GNC right away and buying as much Cell-Tech, Nitro-Tech and Pump-Tech as I can get my hands on before these fine products are no longer available on store shelves!!!
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thats too bad i don't really buy muscle tech but they have some good products
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Nah if they where getting close to financial trouple the sighns would have been there, they would have pulled sponcership engagements at trade shows and bodybuilding shows, they wouldnt have launched a new product etc etc !!
Don't be so sure...plenty of companies keep spending like crazy right up until their final death rattle
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thats too bad i don't really buy muscle tech but they have some good products
I think their products suck, but they probably are in 100 million a year range - high margin at that. It just goes to show how the lawsuits are taking their toll.
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why the lawsuits? you mean cell-tech isn't 39 million times better than regular creatine? ???
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That is bullshit muscle tech is as solid as ever.
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That is bullshit muscle tech is as solid as ever.
Nope. It's a fact. Will start making the news in a week or so.
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Nope. It's a fact. Will start making the news in a week or so.
I don't know how much they paid for their Olympia ad in Times Square, but I'm willing to bet it was a huge waste of cash.
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Maybe it is true.The newer products were maybe a way to create new revenue to keep their company in business.Have to wait & see I guess. I just know what's his name that posts here (McWay or McWhey or whatever it is) & likes MT prods will be in sale heaven w/their products if it is true.
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didn't they just re-sign gustavo?
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I am not surprised, their shit is over priced... it is simple economics there is better stuff out there at lower prices.....
muscle tech figured they could advertise their way to success rather than make great products at reasonable prices that sell by word of mouth...
dumbasses
>:(
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I don't know how much they paid for their Olympia ad in Times Square, but I'm willing to bet it was a huge waste of cash.
"huge waste of cash" . . . ah that's karma kickin in for ya
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I am not surprised, their shit is over priced... it is simple economics there is better stuff out there at lower prices.....
muscle tech figured they could advertise their way to success rather than make great products and reasonable prices that sell by word of mouth...
dumbasses
>:(
I don't think it has anything to do with their sales. Too many lawsuits from selling ephedra. And other lawsuits I'm sure.
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BSN bought over Musletech
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Wonder if the athletes who are contracted are gonna get the shaft. :-\
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Wonder if the athletes who are contracted are gonna get the shaft. :-\
Maybe, maybe not.
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Wonder if the athletes who are contracted are gonna get the shaft. :-\
as always
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as always
Most of those lazy slobs are lucking to have gotten what they have.
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Most of those lazy slobs are lucking to have gotten what they have.
I wonder what they're going to do next? Giving BJs to guys from BSN and Weiders?
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Well they must be saving a heap by dropping Cormeir, opps I didnt mean to let that slip !!!
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This is a catastrophy if it is true. Where are we going to get $8.00 protein bars now guys? Holy S***!
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This is a catastrophy if it is true. Where are we going to get $8.00 protein bars now guys? Holy S***!
Yeah, and $20 for 4 protein RTD's......
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I think their products suck, but they probably are in 100 million a year range -
don't be ridiculous
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don't be ridiculous
Read it and weep.
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I sure hope they still pay the winner of the 2006 Colorado Pro, brought to you by the fine people at MuscleTech.
I wonder if Darrem got paid in full for the show he won 2-3 years ago?
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I don't mind muscletech products but they are way overpriced
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I wonder if Darrem got paid in full for the show he won 2-3 years ago?
I don't think Atwood ever did for winning Toronto Pro
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this 8657% bullshit
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Muscletech? Are you even aware that Muscletech is not a company, that it is owned by Iovate. How about checking that out before you say that Muscletech filed for bankruptcy.
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I don't think Atwood ever did for winning Toronto Pro
Was Toronto Pro sponsored by Muscletech as well?
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Muscletech? Are you even aware that Muscletech is not a company, that it is owned by Iovate. How about checking that out before you say that Muscletech filed for bankruptcy.
it might not be a publicly traded company, but it's most certainly incorporated. Corporations are to protect individuals from liability. If I was incorporated, you could sue the corporation for all of its assets, but not for my personal assets, such as my house.
also, both individuals and companies can file for bankruptcy protection. doing so prevents creditors from taking your assets before you can reorganize. It also allows you to get out of contracts.
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Muscletech? Are you even aware that Muscletech is not a company, that it is owned by Iovate. How about checking that out before you say that Muscletech filed for bankruptcy.
They are absolutely a company even if they have only one shareholder...
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I wonder if Darrem got paid in full for the show he won 2-3 years ago?
For his Orlando Pro win? Hell, I doubt it. >:(
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Guess they aint getting an immediate 10.5% gain in sales from their new products.
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is there any truth to this at all? or is this 3 pages of speculating? maybe you should wait until someone can confirm otherwise it's pretty pointless
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:'(damm thats sad they're products made me shit blood for 3 weeks. That must mean they worked right? :'(
yup, and if Muscletech is able to stay afloat for awhile, they want to use before and after pics of your toilet bowl if their new advertising campaign
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is there any truth to this at all? or is this 3 pages of speculating? maybe you should wait until someone can confirm otherwise it's pretty pointless
as is just about every thread on getbig. If pointless mattered this site wouldn't exist.
Maybe we should wait until it comes out in the magazines before we say anything. Would that make you feel better?
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The word on the street is Muscletech has filed for bankruptcy.
I live for the day.
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Muscletech just recently, last year or so, changed their name to Iovate and switched the MuscleTech name to a product line as opposed to a company name. As for Bankruptcy....bullshit. Trust me, "the word on the street" is wrong.
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Timothy A. McLaughlin, Individually and as Special Administrator of the Estate of Laurie McLaughlin, deceased v. MuscleTech Research & Development Inc., et al., Circuit Court of Cook County. Represent manufacturer of weight-loss supplement in product liability action. Case currently pending.
The distributor of the weight-loss product Hydroxycut has paid Missouri $100,000 to resolve a lawsuit filed by Attorney General Jay Nixon, he said Tuesday. http://64.233.167.104/search?q=cache:G7eXUZFp52IJ:www.bizjournals.com/stlouis/stories/2004/05/03/daily33.html+muscletech+bankruptcy&hl=en
Muscletech Research and Development Class Action Litigation. Mr. Kellogg is co-lead counsel in defending a class action against a dietary supplement manufacturer alleging violations of Florida's Deceptive and Unfair Trade Practices Act, and other claims. After an evidentiary hearing, a West Palm Beach Circuit Court denied class certification, and the Fourth District Court of Appeal affirmed.
"MuscleTech sued for positive drugs test"
http://www.supplementwatchdog.com/muscletech.shtml
Manufacturers of ephedra dietary products face the very first
nationwide class action lawsuit today in the United States
District Court for the Northern District of Illinois. Some of
the named defendants are:
(1) Metabolife International,
(2) Cytodyne Technologies,
(3) MuscleTech,
(4) NVE Pharmaceuticals,
(5) Twin Laboratories and
(6) EAS
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these suits go on forever, and they're at the point of payout time. Muscletech may still exist, but under a different name. They have to file bankruptcy and reestablish their company under a new corporation, or they'll have nothing left. That's how corporate lawsuits work. Also, they spend cash like it's a bad habit.
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I don't think this is true at ALL! I just spoke with them on Wednesday and it sure didnt sound like it ;)
Lena
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I don't think this is true at ALL! I just spoke with them on Wednesday and it sure didnt sound like it ;)
Lena
No offense, but if it's true they wouldn't tell anyone. Who knows either way, but this many lawsuits is a strong indicator of a company restructuring.
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No offense, but if it's true they wouldn't tell anyone. Who knows either way, but this many lawsuits is a strong indicator of a company restructuring.
Time will tell.......but it would be strange to sign up new athletes when its going down.......
L.J
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Time will tell.......but it would be strange to sign up new athletes when its going down.......
L.J
that's just for cover up Lena.. Bodybuilders used to get shafted
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that's just for cover up Lena.. Bodybuilders used to get shafted
I'm sure you know best ;)
I've been with companies for 10 years and still never got 'shafted'..........(oh well, maybe once)
L
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ahhh ain't it great that America has such a lawsuit-happy culture?
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Time will tell.......but it would be strange to sign up new athletes when its going down.......
L.J
It's not strange: Metabolife did the same thing. It's how business works. I'm not saying they're going bankrupt, I'm just stating facts.
There was that huge Xenadrine add in Terminator 3, then 'BAM' 2-3 months later they file for chapter 11.
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I'm sure you know best ;)
I've been with companies for 10 years and still never got 'shafted'..........(oh well, maybe once)
L
If it happened once, then it will happen again
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It's not strange: Metabolife did the same thing. It's how business works. I'm not saying they're going bankrupt, I'm just stating facts.
There was that huge Xenadrine add in Terminator 3, then 'BAM' 2-3 months later they file for chapter 11.
Really? Wow - thats not good ........for Xenadrine.
Lena
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If it happened once, then it will happen again
Like I said.......u r the KING - so u know best ;)
L
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Like I said.......u r the KING - so u know best ;)
L
Don't have to tell me, I was there
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Don't have to tell me, I was there
...........cuz u r EVERYWHERE :)
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I've been with companies for 10 years and still never got 'shafted'..........(oh well, maybe once)
L
Jpegs, please :D
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Muscletech just recently, last year or so, changed their name to Iovate and switched the MuscleTech name to a product line as opposed to a company name. As for Bankruptcy....bullshit. Trust me, "the word on the street" is wrong.
Sorry, but it's absolutely true. Muscletech has at least a dozen entities under the Iovate Health Sciences umbrella. Trust me "the word on the street" is right.
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Jpegs, please :D
HAHA!!! :P
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Time will tell.......but it would be strange to sign up new athletes when its going down.......
L.J
Just because they have filed for bankruptcy doesn't mean they are going down. However, it sure would remove an ugly stain from the supplement business.
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Canadian Holding Company Wants Dismissal From Ephedra Injury Case, NEW YORK -, Mealey's Litigation Report: Ephedra & PPA, December 14, 2005, 5-8 Mealey's Litig. Rep. Ephedra & PPA 7 (2005),
Also Metabolife owned Xenadrine.
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...........cuz u r EVERYWHERE :)
I know I know.. I got eyes everywhere
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Was Toronto Pro sponsored by Muscletech as well?
It was owed to him by the promoter Nimrod King
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why isnt this news worthy if it's true ?
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They may just be restructuring to get out of certain debt and law suits.
Smallish construction companies do this all the time. They build an apartment complex, don't pay the subcontractors then officially go broke so they don't have to pay their creditiors. 3 months later the directors start a new company and on it goes...
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check the SEC website, it's a publically traded company, so all information is available there.
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check the SEC website, it's a publically traded company, so all information is available there.
What is the stock symbol? It's a canadian company, which market does it trade in?
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check the SEC website, it's a publically traded company, so all information is available there.
It's not publicly traded. Where did you get that from?
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trust me? i never believe it when i'm told that ::)
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this 8657% bullshit
Just like the rumors of Craig Titus being charged with murder, right?
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Canadian Holding Company Wants Dismissal From Ephedra Injury Case, NEW YORK -, Mealey's Litigation Report: Ephedra & PPA, December 14, 2005, 5-8 Mealey's Litig. Rep. Ephedra & PPA 7 (2005),
Also Metabolife owned Xenadrine.
Metabolife never owned Xenadrine.
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Metabolife never owned Xenadrine.
Pinnacle owns Xenadrine
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as is just about every thread on getbig. If pointless mattered this site wouldn't exist.
Maybe we should wait until it comes out in the magazines before we say anything. Would that make you feel better?
so far you have presented no evidence whatsoever and nobody backs you up and you've been registered less than a month. you don't have any credibility around here.
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so far you have presented no evidence whatsoever and nobody backs you up and you've been registered less than a month. you don't have any credibility around here.
yessir massir
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This is a rumor just like that rumor about Craig Titus and Kelly Ryan killing someone and trying to leave the country. Right?
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so far you have presented no evidence whatsoever and nobody backs you up and you've been registered less than a month. you don't have any credibility around here.
Oh, and what credibility do you bring to this board aside from living your life on it?
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Oh, and what credibility do you bring to this board aside from living your life on it?
i didn't start this thread, you did
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i didn't start this thread, you did
Yes, good observation. Your point?
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Yes, good observation. Your point?
my point is it's about YOUR credibility, not mine.
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my point is it's about YOUR credibility, not mine.
I would imagine you have no more credibility than I have.
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I would imagine you have no more credibility than I have.
why would I need credibility when I don't start threads like this? explain that to me.
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why would I need credibility when I don't start threads like this? explain that to me.
You have to possess credibility to attack credibility.
Answered!
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Pinnacle owns Craig Titus.
The State of Nevada owns Craig Titus.
Pinnacle dis-owned Titus. Except for using his right tit (only, hiding face) -in new ads -what a bunch of jokers.
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Really? Wow - thats not good ........for Xenadrine.
Lena
This was like 2-3 years ago - when that baseball player died.
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You have to possess credibility to attack credibility.
Answered!
That doesn't make any sense.
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That doesn't make any sense.
Oh well, live with it.
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IF Muscletech or Iovate filed for bancruptcy, if is most likely an ephedra lawsuit defense. The owners of Xenadrine (Cytodyne) did this when the wife if the baseball pitcher that died sued for $600 million (yes, the fat pitcher with too much clothing on and didn't eat for days - his wife wanted that much in a wrongful death suit). There was obviously not enough money (insurance or in cash) to settle - hence the bancruptcy. This led to the sale of the BRAND to Pinnacle.
Other companies have done the same - I believe AST is one of them due to lawsuits.
There is a slight chance that the filing may have come from poor asset/cash management. Let's face it, these guys pay a ton for ads, athletes, slotting fees, marketers, etc. If they got too far ahead of themselves or didn't see a good return on some investments (like research?), they may be in trouble.
Companies like GEN went out of business based on the business, not lawsuits from what I know.
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Oh well, live with it.
Come back when you can back up anything you say.
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Come back when you can back up anything you say.
I'm backing it up. Just remember, you heard it from me first.
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I'm backing it up. Just remember, you heard it from me first.
well i could care less either way, but surely it can't be hard to understand that without credibility or evidence pretty much anybody can make anything up "shawn ray making a comeback" "lee priest getting synthol in his forearms" "dorian yates doing some underground fighting" (oh i forgot, we have a thread about that allready...)
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well i could care less either way, but surely it can't be hard to understand that without credibility or evidence pretty much anybody can make anything up "shawn ray making a comeback" "lee priest getting synthol in his forearms" "dorian yates doing some underground fighting" (oh i forgot, we have a thread about that allready...)
You're right. You're just going to have to trust me until it makes the news I guess.
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i have definitive proof that muscletech is not in trouble, or atleast any permanent trouble.
Klaus Doring, whom we all know to be the most synergistic time travelling bodybuilder in the world has been using muscletech products in the future, which means it still exists there.
Q.E.D
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i have definitive proof that muscletech is not in trouble, or atleast any permanent trouble.
Klaus Doring, whom we all know to be the most synergistic time travelling bodybuilder in the world has been using muscletech products in the future, which means it still exists there.
Q.E.D
Time travelling eh... maybe he's from a different solar system even? His physique is so outta this world.
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It is true, they filed January 20, 2006
A court hearing in the US Southern District in New York is scheduled for Jan 25 at 10am.
It is Case 06-10092 and Adversary Proceeding 06-1147
This is in the Federal litagation regarding ephedra.
The Judge is Judge Peck, if I read the documents correctly.
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5 pages of rumours and no proof why is this thread still going.
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Maybe it's time they put back some dbol powder in their stuff.
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if someone call tell me how to upload a PDF, I will show you what is in the Federal courts.
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I meailed the PDF of the legal document from teh MuscleTech filing to Ron - I asked him to post it.
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Have no proof. Told by a lawyer.
That statement speaks volumes ::)
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This appears to be true:
Debtor: MuscleTech Research and Development Inc.5100 Spectrum Way, Mississauga, Ontario L4WS2, Canada
Petition Date: 2006-01-18
Case number:06-10092
Bankruptcy Court: Southern District of New York Bankruptcy Court
U.S. Judge: James M. Peck
http://www.chapter15.com/bin/chapter15_view_company?cid=1137663608
Ian L. Sitren
SecondFocus
http://SecondFocus.blogspot.com
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UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK
In re EPHEDRA PRODUCTS LIABILITY LITIGATION
In re MUSCLETECH RESEARCH AND DEVELOPMENT INC., et al.;
Foreign Applicants in Foreign
Proceedings.
In re RSM RICHTER INC., AS FOREIGN
REPRESENTATIVE OF MUSCLETECH RESEARCH
AND DEVELOPMENT INC. AND ITS
SUBSIDIARIES,
Plaintiff,
SHARON AGUILAR, an individual; et
al.,
04 MD 1598 (JSR)
Chapter 15 Case No.
0610092
Adversary Proceeding
No. 061147
Given the relation to In re Ephedra Products Liability Litigation 04 MD 1598 (JSR), the reference to the Bankruptcy Court of Chapter 15 Case No. 0610092 and of adversary proceeding 061147 is hereby withdrawn, and the matters transferred to the docket of the undersigned. All previous Orders entered by Bankruptcy Judge Peck remain in place, and the hearing previously scheduled by Judge Peck for Wednesday, January 25, 2006 at 10 a.m will now go forward at the same time before this Court in courtroom 14B, 500 Pearl Street, New York, NY. A further order, specifying which aspects of these matters will be referred back to Judge Peck, will issue in due course. In the meantime, this Order shall be docketed in both the District Court and the Bankruptcy Court.
SO ORDERED.
JED S. RAKOF
Dated: New York, New York
January 20, 2006
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I would guess that the District Court Judge has taken jurisdiction for continuing litligation in his courtroom until there is a decision. At that point the decision would then go to the bankruptcy court for a dertmination of discharge or review of other matters. The District Court Judge can also send the entire matter back to the bankruptcy court or for that matter some of the case, not all of it. This often happens where there is still ongoing complex litigation. It may have been a legal maneuver on the part of Muscletech to stall the litigation.
Ian L. Sitren
SecondFocus
http://SecondFocus.blogspot.com
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I would guess that the District Court Judge has taken jurisdiction for continuing litligation in his courtroom until there is a decision. At that point the decision would then go to the bankruptcy court for a dertmination of discharge or review of other matters. The District Court Judge can also send the entire matter back to the bankruptcy court or for that matter some of the case, not all of it. This often happens where there is still ongoing complex litigation. It may have been a legal maneuver on the part of Muscletech to stall the litigation.
Ian L. Sitren
SecondFocus
http://SecondFocus.blogspot.com
even the negligent have rights until it's resolved
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I'm not surprised that Muscletech filed for bankruptcy because they forsee the inevidibile overflow of lawsuits due to ephedra coming in. By doing that, it'll shut em up
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They always made shitty supps. Good riddance to bad rubish...
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Despite any feelings about the supplements, a bankruptcy filing does not put them out of business.
Ian L. Sitren
SecondFocus
http://SecondFocus.blogspot.com
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I'm surprised that Insider X posted that this is not true - they are usually pretty knowledgeable of what's going on...
On the flip side, maybe a respectable company (Optimum, Twinlab, NOW, ISS, or somebody) will buy them cheap and make the products worth it...
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On the flip side, maybe a respectable company (Optimum, Twinlab, NOW, ISS, or somebody) will buy them cheap and make the products worth it...
filing for bankruptcy protection doesn't mean the company will go out of business. Lots of companies have done it. Pretty much every US airline has at least once in the last 20 years. it just gives the company protection from creditors while they reorganize. in fact, the consumer will probably not notice anything.
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Come back when you can back up anything you say.
I'm back.
Debtor: MuscleTech Research and Development Inc.5100 Spectrum Way, Mississauga, Ontario L4WS2, Canada
Petition Date: 2006-01-18
Case number:06-10092
Bankruptcy Court: Southern District of New York Bankruptcy Court
U.S. Judge: James M. Peck
http://www.chapter15.com/bin/chapter15_view_company?cid=1137663608
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That statement speaks volumes ::)
Yeah, and so does this:
Debtor: MuscleTech Research and Development Inc.5100 Spectrum Way, Mississauga, Ontario L4WS2, Canada
Petition Date: 2006-01-18
Case number:06-10092
Bankruptcy Court: Southern District of New York Bankruptcy Court
U.S. Judge: James M. Peck
http://www.chapter15.com/bin/chapter15_view_company?cid=1137663608
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If the owners have half a brain on them, they have an airtight trust. The company muscletech wouldn't own any assets. It would be owned by a host of other companies, within a trust, who then lease it back to MT. What people don't realize is for a judgement to be paid, all prior liens must be paid. Soooooooooo, these companies within the trust have liens on MT cause they own all their assets. MT never pays back those liens, so they never pay the judgement.
This is nothing but a paper bankruptcy, it will have zero effect on how they do business.
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If the owners have half a brain on them, they have an airtight trust. The company muscletech wouldn't own any assets. It would be owned by a host of other companies, within a trust, who then lease it back to MT. What people don't realize is for a judgement to be paid, all prior liens must be paid. Soooooooooo, these companies within the trust have liens on MT cause they own all their assets. MT never pays back those liens, so they never pay the judgement.
This is nothing but a paper bankruptcy, it will have zero effect on how they do business.
That's somewhat true, but there is a thing called related entities and preferred payments. All insider transactions will be subject to claim. A trust will work, but for bankruptcy to go through and have a plan of reorganization approved by the courts these issues must be addressed and resolved.
No such thing as a "paper bankruptcy" with a maze of related entities intertwined with personal injury lawsuits.
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They say that there are about 60-80 lawsuits involving Muscletech and Hydroxycut's that contain ephedra. There are also class action lawsuits from states about these issues. They is no way that Muscletech can even afford to fight these, let alone pay any judgement, regardless of what it was. With AST Sports Science declaring bankruptcy in their Dymetadrene Extreme case, and that care going to a jury and a jury awarding the plantiff $6 million dollars, it can be reasonably assumed that Muscletech will lose a few of these cases, regardless of the proof that ephedra is the cause of anything, but just by jury sympathy. Add the the fact that each case going to a jury trail, and going through the motions, and depositions can cost upwards of $500,000 per case just in fees, and you understand what is going on.
Two year back, Iovate, or rather eight different Iovates, allegedly, were created for various aspects of the supplement company. Muscletech has no assetts at all, most likely, and the name was probably already leased to Iovate. By declaring bankruptcy, the most they will get is whatever the name is being leased for, which is probably a minimum amount (let's say $500,000 a year), which covers nothing in the scope of things.
Iovate, which owns Muscletech's name, will not be affected by this at all.
Until the laws be changed that prevent something like this, and it happens all of the time, to many companies, oh well.
AST Sports Science is running quite nicely, after avoiding all of the lawsuits and other debts. Not bad for the owners of the companies...
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They say that there are about 60-80 lawsuits involving Muscletech and Hydroxycut's that contain ephedra. There are also class action lawsuits from states about these issues. They is no way that Muscletech can even afford to fight these, let alone pay any judgement, regardless of what it was. With AST Sports Science declaring bankruptcy in their Dymetadrene Extreme case, and that care going to a jury and a jury awarding the plantiff $6 million dollars, it can be reasonably assumed that Muscletech will lose a few of these cases, regardless of the proof that ephedra is the cause of anything, but just by jury sympathy. Add the the fact that each case going to a jury trail, and going through the motions, and depositions can cost upwards of $500,000 per case just in fees, and you understand what is going on.
Two year back, Iovate, or rather eight different Iovates, allegedly, were created for various aspects of the supplement company. Muscletech has no assetts at all, most likely, and the name was probably already leased to Iovate. By declaring bankruptcy, the most they will get is whatever the name is being leased for, which is probably a minimum amount (let's say $500,000 a year), which covers nothing in the scope of things.
Iovate, which owns Muscletech's name, will not be affected by this at all.
Until the laws be changed that prevent something like this, and it happens all of the time, to many companies, oh well.
AST Sports Science is running quite nicely, after avoiding all of the lawsuits and other debts. Not bad for the owners of the companies...
That is a good safety net and a must in todays sue for anything mentality. However, there is still a period of time (2 to 5 years) the courts go back for what is called fraudulent conveyance. All monies transfered and payed to insiders must be returned.
It they are set up right as you have described it won't be as painfull and will persuade others not to sue, but a company of there size, total cost of bankruptcy will be in the 8 figures with ease, if they want to ride it out.
They could pull the plug and take the money and run. I'm sure they are considering this option.
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MuscleTech Research and Development Inc.
Debtor: MuscleTech Research and Development Inc.
5100 Spectrum Way, Mississauga, Ontario L4WS2, Canada
About: The Debtor is a privately held Canadian company. The Debtor-affiliates can be divided into: a. Formulation Companies that own or owned certain product formulations, trade secrets, know-how and patents associated with some health supplement, weight-loss and sports nutrition products formerly sold by MDI; and b. Trademark Companies that own or owned the trademarks associated with some products formerly sold by MDI and some other miscellaneous trademarks, some of which are Canadian, U.S. or foreign trademarks.
Petitioner: RSM Richter Inc.
Canadian Court-Appointed Monitor and Foreign Representative
Petition Date: 2006-01-18
Case number: 06-10092
Bankruptcy Court: Southern District of New York Bankruptcy Court
U.S. Judge: James M. Peck
Petitioners' Counsel: Allen & Overy LLP
Tel:
Fax:
U.S. Trustee:
Related Debtors:
1619005 Ontario Ltd. - 06-10093
ACE Formulations Ltd. - 06-10094
ACE US Trademark Ltd. - 06-10096
Cell Formulations Ltd. - 06-10097
GENERAL Formulations Ltd. - 06-10098
HC Canadian Trademark Ltd. - 06-10100
Comida Inc. d/b/a Ideya - 06-10101
HC Foreign Trademark Ltd. - 06-10102
HC Trademark Holdings Ltd. - 06-10104
HC US Trademark Ltd. - 06-10105
MESO Formulations Ltd. - 06-10106
MISC Formulations Ltd. - 06-10107
MT Canadian Supplement Trademark Ltd. - 06-10108
MT Foreign Supplement Trademark Ltd. - 06-10109
NITRO Formulations Ltd. - 06-10110
Total Assets: to 10.00 Million
Total Liabilities: to 50.00 Million
Bar Date:
List of Largest Creditors: Entity Nature Of Claim Claim Amount
Important Documents:
Docket No. Date Filed Docket Text
001 2006-01-18 CHAPTER 15 PETITION -- Form 1 -- filed by MuscleTech for recognition of Foreign Main Proceeding
001A 2006-01-18 CHAPTER 15 PETITION -- Pleading Petition -- filed by Muscle TEch
002 2006-01-18 MOTION filed by Muscle Tech for Joint Administration of Cases
005 2006-01-18 MEMORANDUM OF LAW supporting Chapter 15 Petition and Application for Order to Show Cause with Temporary Restraining Order and Preliminary Injunction enjoining the Commencement or Continuation of Product Liability Actions against Foreign Applicants and Others filed Muscle Tech
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Here's the whole MuscleTech bankrupcy story:
http://rsmrichter.com/downloads/pdf/insolvency_files/FileID67/Report_of_Proposed_Monitor_dd_Jan_13_06.pdf
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What does Burpmali say about his jeapordize contract.
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Yeah, and so does this:
Debtor: MuscleTech Research and Development Inc.5100 Spectrum Way, Mississauga, Ontario L4WS2, Canada
Petition Date: 2006-01-18
Case number:06-10092
Bankruptcy Court: Southern District of New York Bankruptcy Court
U.S. Judge: James M. Peck
http://www.chapter15.com/bin/chapter15_view_company?cid=1137663608
This one works http://www.chapter15.com/bin/chapter15_view_company?cid=1137663608
(http://www.chapter15.com/bin/chapter15_view_company?cid=1137663608)
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Total Assets: to 10.00 Million
Total Liabilities: to 50.00 Million
You called it.
Sorry I doubted ya, mate.
Does this mean no free t-shirts at the Arnold this year??
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Total Assets: to 10.00 Million
Total Liabilities: to 50.00 Million
Wow... this just made my day start ten times better.
Imagine what that ratio would be if they charged REASONABLE prices?
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are the people who started this rumor the same ones who said chris cormier was dead???
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are the people who started this rumor the same ones who said chris cormier was dead???
Not a rumor. Follow the links.
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WRONG
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They grossed 500 million last year. and Paid out like 5% to athletes. They are NOT bankrupt
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The word on the street is Muscletech has filed for bankruptcy.
"Word on the street"? How fucking gay...
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I dunno, mate. Generally, a company this large doesn't get to the point of a bankruptcy filing without there having been some writing on the wall.
Really? Freddy&Fannie were infinitely larger than MuscleTech and they bankrupted without any signs of warning - otherwise it's clients would have taken their money before the companies went down the drain and there wouldn't be so many people now depending on the government to bail them out.
SUCKMYMUSCLE
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hydroycut is pretty popular with people who are not into bodybuilding, people who want to slim down... i was suprise when i know some of friends were taking them to lose weight.....
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Maybe it is true.The newer products were maybe a way to create new revenue to keep their company in business.Have to wait & see I guess. I just know what's his name that posts here (McWay or McWhey or whatever it is) & likes MT prods will be in sale heaven w/their products if it is true.
You rang?!!! ;D
I'm happy anytime I can get MuscleTech products (or those of BSN, ON, Nature's Best, etc) cheap, such as the Nitro-Tech Hardcore bar I just finished eating. The Chocolate Crisp one ain't the most pallet-pleasing thing in the world (it leaves a horrible aftertaste). But, at $0.75, it's a bargain.
But, those are simply standard GNC markdowns. When I can get those 7-lb jugs of CELL-TECH for $20, as I was doing in 2005, that's when I get to reach "sales heaven".
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Muscletech just recently, last year or so, changed their name to Iovate and switched the MuscleTech name to a product line as opposed to a company name. As for Bankruptcy....bullshit. Trust me, "the word on the street" is wrong.
It appears that Iovate is a giant company that bought the MuscleTech company. That might explain why Iovate has the other supplement companies (Six Star and Muscle Asylum). They also use the Hydroxycut name, for the version of the product you see advertised on TV. The name "MuscleTech" doesn't appear on those at all. And, Iovate also has some Hoodia fat-burner product and other thermogenic supplements, none of which have the MuscleTech label.
hydroycut is pretty popular with people who are not into bodybuilding, people who want to slim down... i was suprise when i know some of friends were taking them to lose weight.....
Yep. That's the one they show on TV without the MuscleTech name. Some small store still sell the version of Hydroxycut with the MuscleTech logo (the ephedra/ma-haung-free version). Hydroxycut Hardcore is also quite popular as well. At Vitamin Shoppe, while the clerks keep the other fat-burners on the shelves, they keep the bottles of HH behind the counter or in the back, because people keep stealing them.