Sisel Versus Neways – The Batte Begins
Sisel International released a press release on 8 June 2007 in response to the lawsuit issued against them by Neways International.
Neways was sold to Golden Gate Capital in 2006 and since the acquisition, Golden Gate has sold off assets such as the corporate headquarters and manufacturing facilities in Utah. As with its acquisition of Herbalife, it seems Golden Gate are liquidating Neways in preparation of a sell off as a former shell of itself or to use the funds raised for other take-overs.
Sisel International is run by Darrick Mower and Tom Mower Junior, the sons of Tom and Dee Mower who were the founders of Neways International. It has a small range of nutritional products available but intends to bring to market a larger range of nutritional and personal health products that they claim will be the highest quality in terms of safety and effectiveness for consumers. It also claims to have a compensation plan that has ironed out all the foibles of other compensation plans currently available.
Neways International was the original company built by Tom Mower Senior and Dee Mower. It was sold to Golden Gate for an estimated $US700 million. As the Mower Mission was the core of building Neways, Sisel poses a threat to Neways because of the loyal distributor base following the Mower Mission and not the new Neways under Golden Gate’s control.
Tom Mower Junior stated “We will aggressively defend our right to provide the greatest products anywhere. We aren’t interested in taking cheap shots at our competitors.” This seems to be the Mower way, getting on with the job. Further Darrick Mower stated “We recognize this lawsuit for what it is: a transparent attempt to slow by litigation the progress of what could become the greatest network marketing company in history.”
Golden Gate had no comment preferring to let their lawyers do the talking in court.
Either way, the lawsuit is not good for millions of Neways distributors who remained loyal throughout the takeover. The whole company is reliant on the distributors continuing to sell products through their networks. These distributors are very loyal to harmful- ingredient-free products and now that the manufacturing facility has been sold, the integrity of the products themselves is in doubt.
Overall it looks as if Neways could be a house of cards ready to fall under Golden Gate’s management.