Blue Stuff filing bankruptcy
Well, I'm glad the original deal between Blue Stuff and Bank One to purchase the Gold Dome didn't go thru. They had originally put a proposal to buy the Gold Dome.
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"Blue Stuff company to be sold
By Jim Stafford
The Oklahoman
Less than two years after it was honored as Oklahoma's "venture of the year," Oklahoma City-based Blue Stuff Inc. will be sold by its creditor, IBC Bank, on Oct. 1, the company said in a statement Monday.
Founded in 1998 by Jack McClung to sell an emu-based blue ointment that was touted for its health benefits, Blue Stuff sales hit $82.9 million in 2002.
The Oklahoma Venture Forum and the Oklahoma Investment Forum honored it with the 2003 Venture of the Year award.
But the company also agreed to pay $3 million to settle a Federal Trade Commission complaint that it made unsubstantiated claims about the goo's pain-relieving qualities.
Last year, Debra Murray, now company president and daughter of Jack McClung, told shareholders in a letter that the company was enduring financial difficulties relating to a strategy shift away from direct retailing to wholesaling its product to retail stores.
Monday, the company issued the following statement through Steve Brown, its vice president for marketing:
"Blue Stuff Inc., at the request of secured creditor IBC Bank, is doing a voluntary asset surrender to IBC Bank on Sept. 30, 2004, and will no longer be doing business as Blue Stuff Incorporated.
"IBC Bank is selling these assets to our knowledge essentially as a single entity Oct. 1. The company that buys these assets is expected to continue to sell Blue Stuff products without interruption.
"To repeat that important point -- all customers are expected to be able to continue to obtain Blue Stuff products. While achieving success as a product and a company, Blue Stuff had several things happen to it in 2002 and 2003 that caused its debts to exceed its assets.
"We apologize that we are unable to provide additional information at this time."
Brown said the company would have nothing to say beyond the statement.
He would not say whether Blue Stuff officers knew who the buyer was that IBC apparently had lined up. For now, McClung is chairman of the board, Brown said.
As for the bank's relationship with Blue Stuff, Randy Roper, IBC Bank's Oklahoma market president, would only say that "as a matter of policy, we don't comment on our customers and their business affairs."
Stockholders received a letter from Murray last week that told them essentially the same thing that Brown said in his statement.
Stockholder Judy Armstrong and her husband bought 1,000 shares after they became distributors for Blue Stuff. Armstrong tried the product and found it was effective in easing the pain in her legs.
Blue Stuff is a privately held company that offered stock only to its distributors and certain customers.
The Armstrongs paid $2 per share and believed that they would earn "10 times" what they invested, she said, based on what McClung had said.
"But I don't think anybody ended up with anything," Armstrong said. "I'm gung-ho on the product. Still am."
The company did a reverse stock split of its shares last year on a 1-share-for-20,000 basis, that left all but two shareholders, McClung and Vice President Josh Bellieu, with fractional shares.
"I guess we're considered former stockholders, but we've never been paid for our stock," she said. "
Originally Posted by Patrick
I have heard that using various lotions during sex does improve the feelings for the woman though. Okay, Okay.....this belongs in the other forum!
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