Direct Sales Clothing Company, Weekenders has apparently gone out of business. While reports are a bit fuzzy, it seems that the company filed for bankruptcy protection last week, and then without any notice, closed its doors, yet the website is still active?
The Toronto based company, founded in 1984 by George Raynault and Bob Bailey has apparently been struggling for years now. Weekenders has representatives in the US, Canada, The Netherlands and the UK. There has been some talk lately of the company’s problems and even hints that the closing might be inevitable. However, recently the company launched their spring/summer line and it seemed that they would find a way to re-build. That was not to be however and last week, AFTER the closing, a letter was sent out by Weekenders Canada President, Lia Keeping, to distributors after the company had already shut down, with an explanation for the closing……
Dear Managers and Coordinators,
It is with much sadness that I tell you effective immediately, Weekenders Global has declared bankruptcy. Our owners have ceased all operations in all countries effective immediately. We all know that our company has been struggling for the past few years. Unfortunately, the end has come, faster than anyone could have predicted and I still find it hard to believe, as I was informed at 11:30 this morning. This is not the way I wanted to tell you, unfortunately, due to circumstances beyond my control, I did not find out in time to set up a call or to call you directly as I would have wished, please understand that..
We are doing everything possible to fill all orders and backorders for orders received up to and including noon today Monday, June 9.
I want each and every one of you to know how much the past 23 years have meant to me, how much YOU have meant to me. You have helped me grow both personally and professionally and in so many ways. The opportunity that Weekenders provided has been the best thing that ever happened to me and to you too! You are a dynamic, knowledgeable, classy, fun and utterly fantastic group of women. I am so thankful to have known you, worked with you, cried with you and most of all laughed with you.
I am so proud of you, what you have accomplished and the amazing skills that each and every one of you possess. Take pride in who you are, always remember how proud and privileged I am to have been your friend, your colleague, your coach and your President. I hope you remember all the fun we had together and I am sure our paths will cross again.
Please know, I am ok and I want you to be to. I love you.
I’m not sure this letter is much of a consolation to the thousands of distributors, many of whom say they are owed thousands in back orders and commissions. I also think it’s incredibly self serving to assure everyone that you are ok, yet there are thousands who have no answers at all. I’m sure we will hear more in the company weeks about exactly what happened and the role the execs at the company played in its downfall. It is unfortunate to hear stories like this and while it is not unusual for companies to struggle and even close their doors, it hurts the direct sales industry tremendously when irresponsible companies shut down without warning, leaving their employees stranded. In the meantime, the company should at least take down its website so that nobody else gets involved….
Let this serve as a notice to all operators of Network Marketing companies. You have a responsibility to ALL of the people who both develop your products and represent them. This is a people business and the reason the industry gets such a black eye is because of crappy actions like this one by Weekenders. It is beyond comprehension how people can live off the labor of others and yet when things get bad, you just up and leave without going through a respectable and professional manner to unwind the company. Yes, it is harder to face the thousands of people you have disappointed (and gotten wealthy from) but what you have just done by walking out on all of them is destroyed any credibility you thought you may have. The ending to your notice to the loyalists is a complete joke. No, you are not well - you are a coward and to tell people that the end came faster than you knew is completely impractical and no one with half a business mind could comprehend that. These people gave their time and commitment to you and Weekenders and the best you can do is tell them you are “ok” and want them to be as well. Return their money, pay all the back-owed commissions and shut down your website, then we can start the healing process and be on our way to being “ok”.
UPDATE: (6/24/08)
Ok, here is what we have been able to find out thus far. Weekenders does NOT seem to have filed for bankruptcy protection, yet - at least not in the US (which they would be required to do since they have a business license in the US). All searches of public records have produced nothing. However, since the company is actually registered as a Canadian company based in Richmond Hill, Ontario, we have been unable to search any public records there because they dont publish them online.
We also reached out to the Direct Selling Association (which Weekenders is/was a member of). The organization has not gotten back to us as of this update. It is a bit unusual that the DSA doesnt have a single mention on their website about one of their members going out of business and no information for distributors yet the headline of “In the News” is a 72 year old lady winning her 15th Pink Cadillac - seems pretty frustrating given the Associations mantra of “ethics, trust, confidence”.
We have called the Weekenders Corp office here in the US and Canada several times and just get a busy signal - the phone number we have is 905-886-5995. There is also another number of 847-478-0077 which doesnt seem to work either. Also, we were able to pull up an administrative contact named Shaun Langley who seems to use an email address of davidd@weekenders.com
The Canadian Weekenders website is down but US, UK and others are still live and still pitching the opportunity in their “Message“.
We will continue to provide more information as we get it.
Popularity: 50% [?]
Well it was another crazy week with more unanswered questions related to Weekenders going out of business. While more and more distributors have begun selling their wares on eBay and Craigslist to recoup some money, still no word from the Direct Selling Association as to what happened or any insight.
There was a bunch of philanthropic news this week. mark announced a new campaign with spokesperson Lauren Conrad and Neways donated over 10,000 bottles of water for the Utah Summer Games.
In financial news, supplement company Nutrilite announced that they crossed the $3B sales mark which is truly amazing and the S&P began a review of Tupperware’s stock based on its new rating but Mad Money’s Jim Cramer think the stock is a buy at this point.
USANA continues to confuse us. After getting rebuffed on their offer to take the company private by a special committee who said the offer was too low, Dr. Myron Wentz (the company’s chairman) decided to reaffirm the offer at the same price!! Makes no sense at all and all Wentz seems to be doing is driving up the value and making his bid seem less and less practical. It doesnt’ help that shareholders are starting to sue the company because of the low ball offer that he is proposing. This story is far from over.
