In this article, we will learn about the history and launch of Herbalife nutrition founded by Mark Hughes.
Herbalife nutrition and the debut of Founder Mark Hughes
In February 1980, Mark Hughes began to sell original Herbalife weight management products from the trunk of his car. Hughes often claims that the origin of his products and programs is due to the concerns of his mother Joanne. He attributes Joanne's premature death to eating disorders and unhealthy weight loss methods.
A Herbalife website says the company's goal is to change the world's eating habits. His first product was a protein drink designed to help people control their weight. In 1982, Herbalife received Food and Drug Administration Claims for certain products and for mandragore, poke root and food grade linseed oil in another product.
In response to these complaints, the company revised its product statement and reformulated its products.
The Canadian Department of Justice filed criminal charges against the company in November 1984, accusing the company of misleading medical claims in advertisements.
In 1985, the company was regarded as the fastest-growing private enterprise in the United States, with sales increasing from $386000 to $423 million in the previous five years. In the same year, the California Attorney General sued the company for exaggerated allegations about the effectiveness of its products. The company suffered losses in the lawsuit and was forced to lay off nearly 800 people in May 1985.-Yes. The company closed the case for $850000, but did not admit the misconduct, but stopped the sales of two products. In 1986, Herbalife became a NASDAQ listed company and changed its brand to Herbalife international.
However, due to the negative publicity of the FDA lawsuit, the company lost $3 million that year.
- In 1988, the company expanded its business to Japan, Spain, New Zealand, Israel and Mexico, and its global sales increased to $191 million in 1991.
- In 1993, the company made a secondary issuance of 5 million shares.
- In 1995, she launched a range of personal care products, including perfume and facial cleaning products.
- By 1996, the company had expanded to 32 countries, with international sales accounting for more than half of the total sales.
- The company has been Tried in a civil court Revenue was withheld by two former distributors in 1997.
Death of Herbalife founder
In 1999, Hughes claimed that Wall Street underestimated the company and tried to privatize it. Although the board of directors approved the takeover offer, the shareholders of the company sued the company because they believed that the stock price provided to them was unfair. Mark Hughes, 20 May 2000 Died at the age of 44-Yes. The autopsy results of the Los Angeles County coroner showed that the contractor died of accidental excessive drinking and the antidepressant doxepin. After his death, the company was led by Christopher peel until October 2001.
The future and revival of Herbalife nutrition
In 2002, J.H. Whitney & Company and Golden Gate capital acquired the company for $685 million and re privatized it. In 2002, following the prohibition of supplements containing ephedrine in several states of the United States, the plant source of ephedrine in herbal products was cut off. In April 2003, Michael O. Johnson joined Herbalife as CEO after working for Walt Disney Company for 17 years.
On December 16, 2004, the company made an initial public offering of 14500000 ordinary shares on the New York Stock Exchange, with a net price of $1.3 billion at $14 per share. In the mid-2000s, Herbalife modernized its manufacturing facilities, increasing its output to 60% internal Changed the way products are sold to distributors.
On April 9, 2013, KPMG, the company's long-term auditor, resigned. Previously, KPMG executives who supervised Herbalife's audit admitted that he provided a golf friend with inside information of several companies, including Herbalife and SKECHERS. The company has promised PwC acted as auditor on May 21, 2013.
In March 2014, Herbalife was investigated by the Federal Trade Commission and Illinois. On May 7, 2014, the company announced that Bank of America Merrill Lynch Redemption of $266 million of shares.
In July 2016, Herbalife agreed to change its business model and pay $200 million to its distributors in accordance with the agreement with the Federal Trade Commission. In November 2016, the company announced that chief operating officer Richard Goudis wouldCEO in June 2017 Johnson will become executive chairman. In August 2017, the company announced to repurchase its shares with us $600 million. On April 25, 2018, Herbalife announced that it was renamed Herbalife nutrition. Therefore, the company has a very promising future!