Neways, (Springville, Utah) - The ongoing battle between Sisel International, LLC and Neways International Inc, continues to rage on.
In the newest development, a federal court in Utah has now sided with Neways and has issued an injunction against Sisel and five of their Japanese distributors to return all Neways distributor information. The ruling will prohibit Sisel from using any of that information. The court also found that Sisel’s top three distributors have likely breached their contracts with Neways by recruiting Neways distributors to join Sisel, Those 3 Sisel distributors are now prohibited from recruiting Neways distributors for at least one year from each distributor’s date of suspension from Neways.
For those of you not up to date on this ongoing battle, let me give you the background info…….Neways, a health and wellness supply company, founded and built by Tom and Dee Mower, was sold to Golden Gate Capital in 2006 for $700 million dollars. Since acquiring the company, Golden Gate has continued to sell off assets, including Neway’s corporate headquarters and manufacturing facilities in Utah. This leads many to believe that Golden Gate is liquidating Neways in preparation of a sell off the company as a former shell of itself or to use the funds raised for other take-overs.
Sisel International was founded and is run by Darrick Mower and Tom Mower Junior, the sons of Neways founders Tom and Dee. Sisel too is a nutritional product company. They have a limited number of products available now, but intend on vastly expanding their nutritional and personal product line over the next year. Sisel claims that their products are the safest and highest quality products in terms of effectiveness and reliability for consumers.. Sisel also claims to have a compensation plan that has ironed out the flaws of other compensation plans currently available from other multi-level companies.
Loyal distributors who joined and stayed with Neways because of the “Mower Mission,” which was the core of building the company, are not eager to follow the company under Golden Gate’s control Distributors are worried about Golden Gates selling off of assets, and feel that the company might be in jeopardy, especially with the closing of its plant in Utah. Distributors also feel a sense of loyalty to the company’s original founders and original mission. This poses a threat to Neways.
Loyal Distributors are the core to any multi-level marketing company. Without them, Neways will suffer. In May 2007, in an effort to prevent Sisel from recruiting Neways distributors, Neways filed a lawsuit against them. Originally, United States District Court in Utah refused to grant Neways request for an order prohibiting Sisel from recruiting Neways distributors. In denying Neways motion for a preliminary injunction that sought to bar Sisel from recruiting Neways distributors, the court stated that there was no basis for any such restraint against Sisel. The battle between Neways and Sisel has gone back and forth since May of 2007. And now, the court has sided with Neways, and so, the battle continues. We will keep you up to date with any new developments in the battle for recruiting rights.
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