Quixtar Takes Swift Action To Protect Its Business

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Non-compliance with company rules results in business terminations.

Quixtar Inc. announced this morning the termination of 15 independent businesses as a result of actions detrimental to the company's North American operations. The businesses affected were part of the Team training organization or other training organizations using Team's training materials and named as co-plaintiffs in a lawsuit filed by Team's founders against Quixtar yesterday in a California district court (07-08413-CK).

Quixtar was working with Orrin Woodward and Chris Brady, founders of the Team training organization, to correct issues related to Team's teaching of inappropriate business-building tactics, improper positioning of the opportunity, and use of unauthorized support materials. These teachings placed themselves, affiliated Independent Business Owners (IBOs), and Quixtar at serious and immediate risk of legal and regulatory actions and had to be stopped.

Woodward and Brady refused to work with the company to return Team to compliance with Quixtar's rules, stated their intentions of starting a new company in competition with Quixtar and filed a lawsuit against the company seeking relief from their non-compete requirements. The lawsuit is filled with outrageous claims and statements and will be defended vigorously by the corporation.

Due to their refusal to correct their business practices, Quixtar terminated the independent businesses of Woodward and Brady as well as those who joined them as plaintiffs in the class action lawsuit. A Temporary Restraining Order and Preliminary Order of Injunction was sought by the company and granted today in a Michigan district court, preventing Woodward and Brady from interfering with the Quixtar Line of Sponsorship (LOS), soliciting IBOs for another business opportunity, disparaging Quixtar and damaging its reputation, and requiring them to return to Quixtar its proprietary and confidential LOS data.

Additional co-plaintiffs whose Quixtar independent businesses were terminated include Billy Florence, Don Wilson, Randy Haugen, Chuck Goetschel, Tim Marks, Kirk Birtles, James Martin, Aron Radosa, David Brandy, Benjamin Dickie, Bruce Gilbank, Michael Martenson, and Chuck Cullen.

Incidentally, the law firm representing the plaintiffs is the same firm involved in several other frivolous lawsuits against Quixtar and IBOs.

Quixtar remains committed to the support of all IBOs and will work with those who agree to abide by the company's rules and maintain high ethical standards. In fact, the company has announced many improvements to further enhance its business, including more than $200 million in investments in product development, brand building, training, and compensation enhancements.

Commentary from the company is being provided at the Alticor Media Blog and Quixtar is actively reaching out to IBOs who were in the Team training organization and other organizations affected by these terminations to restate our commitment to supporting their independent businesses.

About Quixtar
Quixtar Inc. offers a business opportunity that allows people to have a business of their own based on retailing products and sharing the opportunity with others who will do the same. Quixtar supports Independent Business Owners (IBOs) with a proven compensation plan, portfolios of quality products in health, beauty and other consumer categories, plus the merchandising materials, training and education they need to be successful. IBOs also are supported by communities of those who have succeeded in Quixtar businesses before them.

Since 1999, Quixtar IBOs have generated $6.8 billion in sales through Quixtar.com, plus more than $500 million for Quixtar Partner Stores. These sales have earned IBOs more than $2.2 billion in bonuses through the Quixtar® Independent Business Owner Compensation Plan plus other incentives. Their efforts have propelled Quixtar to be ranked the #1 online Health & Beauty retailer based on sales, and 22nd among all e-commerce sites, according to Internet Retailer magazine.

A subsidiary of Alticor Inc., Quixtar supports independent businesses in the U.S., Canada, Puerto Rico, and various trust territories and independent island nations in the Pacific and Atlantic Oceans and Caribbean Sea.

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ANNA BRYCE
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