SAN ANTONIO, Dec. 5 /PRNewswire/ -- Mark Nutritionals, whose Body Solutions(TM) brand is a national leader among weight loss products, today announced major steps forward in its reorganization under Chapter 11. Among important recent developments, the company has:
-- Hired a new management team to develop specific reorganization plans
and take the company forward;
-- Reached an agreement with the U.S. Federal Trade Commission; and
-- Made substantial progress in turning around losses and rapidly
positioning the company for doing business in the right markets with
controlled growth and resulting profitability.
In light of these recent developments, CEO Larry Cochran said the company's Chapter 11 Reorganization was "going better, and more quickly than expected.
"We've already had a dramatic turnaround in stemming significant losses and are headed to profitability within the next 30 days."
The new management team at Mark Nutritionals includes three of the former top executives at Pace Foods, who helped turn Pace Picante(TM) Sauce into a household name, and engineered its sale to Campbell Soup for $1.1 billion. Robert Burke, Bill Wagner and Gary Lane, formerly VP of Sales and Marketing, Chief Financial Officer and Director of Retail for Pace Foods respectively, have been retained by Mark Nutritionals. In addition to the Pace Foods experience, the new management team has over 50 combined years of successful senior level experience with major branded food companies such as Frito-Lay, Hershey, and General Mills.
The former Pace executives are working with Cochran to aggressively develop and implement financial, marketing and operations plans that will form the reorganization plan, expected to be presented to creditors and filed with the court by the end of the year.
"With the new management team, we now have the right people and with over $120 million previously spent marketing and developing a strong brand, we believe this is a great turnaround opportunity to build on the brand and be a leader in the sector," Cochran said. "We fully expect that Mark Nutritionals will emerge from the bankruptcy quickly and with an even stronger position than it previously held in the nutritional products industry.
"Our main objective is to demonstrate a clear path to sustainable profitability that will create significant value for creditors and ensure that the Body Solutions brand remains a leader in the weight loss industry," Cochran continued.
The FTC had been investigating Mark Nutritionals for the claims made in its prior marketing of Body Solutions products since the Fall of 2002. The agreement provides for mutually agreeable definitions of how Body Solutions will market its products in the future, including increased restrictions on how third party endorsements are used.
"In addition, several state Attorneys General have made similar claims and we are confident that, working cooperatively with them, we can also address their concerns," Cochran said.
Cochran continued, "Body Solutions enjoys a high level of visibility and customer loyalty, and this agreement with the FTC is part of our commitment to lead the industry by example."
Body Solutions filed for Chapter 11 protection in September. The company retained turnaround specialist Larry Cochran of Eldon Partners, LLC immediately after filing. Eldon Partners is a turnaround and business advisory firm based in San Antonio, TX.
Body Solutions is a leading healthy weight loss system that combines a behavior modification with nutritional products, including dietary supplements and meal replacements. More information can be obtained at www.bodysolutions.com .
Text of the agreed order with the FTC can be obtained from the FTC's website at http://www.ftc.gov/os/2002/12/marknutritionalsord.htm