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Ken Nielson on MLM Company Modere closing and Growing Business on Count on the Truth Radio with Peter Mingils
Peter Mingils shares information about the MLM business model with influence of private Equity Ownership and high Interest loans. This is probably a considerable variable in the sudden closing of the MLM Company Modere.
Ken Nielson on this episode of Count on the Truth Radio show. Ken Nielson runs a home based business successfully an hosts this Building Fortunes Radio series to show people the benefits of building an MLM.
Ken Nielson displays this and a lot of other information on his website https://countonthetruth.com
Here is some of the speculation about what happened with Modere:
The Recent History of Modere: A Tale of Closure, Debt, and Lawsuits
The multi-level marketing (MLM) industry has long been a polarizing space, promising financial freedom to distributors while often drawing criticism for its business practices. Modere, a Utah-based MLM company focused on wellness and personal care products, recently became a cautionary tale in this landscape. On April 11, 2025, after 23 years in business, Modere announced its abrupt closure, leaving thousands of distributors, employees, and customers reeling. This post delves into the recent history of Modere, exploring the factors leading to its collapse, including its financial struggles with debt, high-profile lawsuits, and the broader challenges facing the MLM industry.
Modere's Origins and Growth
Modere's story begins with its predecessor, Neways International, founded in 1987. Neways operated as an MLM selling personal care, nutrition, and household products, emphasizing a "clean label” philosophy by avoiding harmful chemicals like parabens. However, Neways faced significant legal troubles, culminating in 2006 when its founders were sentenced to prison for tax evasion. That same year, San Francisco-based private equity firm Golden Gate Capital acquired Neways, rebranding it as Modere in 2013 to distance itself from the tainted legacy. Under new ownership, Modere aimed to modernize, focusing on social retail—a model that encouraged distributors, dubbed "Social Marketers,” to sell through e-commerce and social media rather than traditional party-based sales. By 2015, Modere had fully relaunched, boasting a product line that included liquid collagen supplements, beauty products, and household goods, all marketed as safe and eco-friendly. [Ref web ID: 4] [Ref web ID: 7]
Modere grew steadily, selling over 3 million products globally and operating in 44 international markets. The company's flagship product, Liquid BioCell collagen, gained a loyal following, with customers on platforms like X praising its benefits for hair loss and overall wellness. Leadership changes bolstered its image: Asma Ishaq, who joined after Modere acquired her company Jusuru International in 2017, became CEO in 2018. Ishaq, a celebrated figure in the wellness industry, was named a 2022 Entrepreneur of the Year by Ernst & Young and a Forbes Top 10 Transformative CEO in 2021. Under her leadership, Modere positioned itself as a women-led company, joining initiatives like the Women Business Collaborative in 2022 to promote gender equity in business. [Ref web ID: 7] [Ref web ID: 16] [Ref web ID: 24]
Financial Struggles and Debt
Despite its growth, Modere's financial foundation was shaky. By 2023, the company was majority-owned by Z Capital, a private equity firm that had saddled Modere with significant debt. According to a lawsuit filed by former top distributor Justin Prince, Z Capital used Modere's strong revenues in 2020 and 2021—its biggest revenue year ever—to refinance its debt obligations. However, instead of reinvesting the loan proceeds into Modere, Z Capital allegedly diverted funds for its own benefit, leaving Modere with an "excessive debt load.” This mismanagement, combined with poor decisions by Modere's Board of Directors, led to declining sales and reduced commissions for distributors, including Prince, who had generated over $2.5 billion in revenue for the company. [Ref web ID: 9]
The financial strain became evident by May 2023, when CEO Asma Ishaq privately informed Prince during a meeting in Belize about Modere's looming debt servicing issues and ominous business outlook. Ishaq proposed cutting compensation for top marketers to keep the company afloat—a move Prince warned would further harm sales. By July 2023, Modere's situation worsened, forcing Z Capital to inject $10 million back into the company to cover payroll, commissions, and debt payments. By August, the company laid off nearly 30% of its workforce, and a board member revealed they couldn't afford an investment banker to sell the business without risking bankruptcy. These financial struggles set the stage for Modere's eventual collapse. [Ref web ID: 9] [Ref web ID: 23]
Lawsuits and Distributor Exodus
Modere's closure was not just a result of financial mismanagement; legal battles and distributor defections played a significant role. One of the most prominent lawsuits involved Justin Prince, Modere's top earner and an equity holder. In August 2023, Modere terminated Prince, accusing him of "sabotaging and crippling” the company by planning to launch a competing MLM, Make Wellness, which attracted many former Modere distributors. Modere filed a lawsuit against Prince, while Prince countersued, alleging the company's financial mismanagement and debt burden were the real reasons for its decline. He claimed Modere's actions harmed not only him but also the livelihoods of countless Social Marketers. [Ref web ID: 9] [Ref web ID: 10] [Ref web ID: 19]
Another lawsuit in 2024 further weakened Modere. The company sued former high-ranking distributors, including Amy DeLoof, Kari Lang, and Lisa Simone, for allegedly violating non-compete clauses by poaching Modere distributors to join Frequense, a Texas-based MLM. Modere accused the trio of using company data and relationships to build their businesses, only to orchestrate a mass exodus to Frequense, taking "thousands” of distributors with them. However, a federal judge in Utah denied Modere's request for a temporary restraining order, ruling that the company's contracts with the distributors' businesses—not the individuals themselves—could not enforce the non-compete clauses. This legal loss, combined with the departure of more top distributors in early 2024, exacerbated Modere's decline. [Ref web ID: 4] [Ref web ID: 15]
Modere's legal troubles were not new. Between 2016 and 2018, the company faced lawsuits from competitors like Nerium International, AdvoCare, and distributor Jessie Lee Ward, alleging issues such as salesforce poaching, trade secret misappropriation, defamation, and conspiracy. These earlier lawsuits, while not directly tied to the closure, reflected a pattern of contentious relationships within the MLM industry that likely strained Modere's resources and reputation over time. [Ref web ID: 6]
The Abrupt Closure and Aftermath
On April 11, 2025, Modere shocked its community by announcing its closure with no prior notice to distributors or employees. The company's website was deactivated, replaced with a brief message thanking its "cherished community” for 23 years of support. Employees were given just three hours to clear out, according to a company email shared with The Salt Lake Tribune, and distributors were left without commissions, with some reporting unfulfilled customer orders. The closure came shortly after misleading public statements; a February 2025 press release had announced the hiring of a new Chief Revenue Officer, claiming Modere was "expanding its reach and accelerating growth.” [Ref web ID: 1] [Ref web ID: 4] [Ref web ID: 10]
The fallout was immediate. On X, distributors expressed devastation, with some calling the closure "wild, crazy, and nasty work” due to the lack of warning. Others, like
@SynergyH2HTeam, lamented the impact on distributors who relied on Modere for income. Former CEO Nate Frazier, who had taken over after Ishaq's departure in 2024, resigned just a week before the closure, amid speculation that tariffs on Chinese ingredients—key to Modere's supplements—added further financial pressure. Posts on X also noted that some top earners attempted to rally distributors, promising a new company led by Josh Zwagil of My Daily Choice, though skepticism abounded. [Ref web ID: 2] [Ref web ID: 10] [Ref post: 3] [Ref post: 4]
Broader Industry Challenges
Modere's collapse reflects broader challenges in the MLM industry. The direct sales sector saw a boom during the COVID-19 pandemic, but a "painful correction” began in late 2022, as Modere itself acknowledged in a lawsuit. Rising scrutiny from regulators, such as the Federal Trade Commission, has targeted MLMs for pyramid scheme practices, with companies like AdvoCare and Neora facing penalties. Additionally, the MLM model often leaves distributors in debt, as seen with companies like LuLaRoe, where recruits accumulated credit card debt to meet sales quotas. Modere's own model, which encouraged distributors to buy expensive product packages (up to $699.99) to maximize earnings, likely contributed to financial strain for its Social Marketers. [Ref web ID: 4] [Ref web ID: 11] [Ref web ID: 12]
Conclusion
Modere's closure in April 2025 marks the end of a 23-year journey marred by financial mismanagement, excessive debt, and legal battles. The company's struggle with Z Capital's debt burden, coupled with high-profile lawsuits against distributors like Justin Prince and others, eroded its stability. The abrupt shutdown, with no notice to its community, underscores the volatility of the MLM model, where corporate decisions can devastate the livelihoods of distributors overnight. As the industry faces increasing scrutiny, Modere's story serves as a stark reminder of the risks inherent in MLMs—for both companies and the individuals who invest their time, money, and trust in them.
The post Ken Nielson on MLM Company Modere closing and Growing Business on Count on the Truth Radio with Peter Mingils appeared first on Building Fortunes Radio Network.
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By Peter MingilsPeter Mingils shares information about the MLM business model with influence of private Equity Ownership and high Interest loans. This is probably a considerable variable in the sudden closing of the MLM Company Modere.
Ken Nielson on this episode of Count on the Truth Radio show. Ken Nielson runs a home based business successfully an hosts this Building Fortunes Radio series to show people the benefits of building an MLM.
Ken Nielson displays this and a lot of other information on his website https://countonthetruth.com
Here is some of the speculation about what happened with Modere:
The Recent History of Modere: A Tale of Closure, Debt, and Lawsuits
The multi-level marketing (MLM) industry has long been a polarizing space, promising financial freedom to distributors while often drawing criticism for its business practices. Modere, a Utah-based MLM company focused on wellness and personal care products, recently became a cautionary tale in this landscape. On April 11, 2025, after 23 years in business, Modere announced its abrupt closure, leaving thousands of distributors, employees, and customers reeling. This post delves into the recent history of Modere, exploring the factors leading to its collapse, including its financial struggles with debt, high-profile lawsuits, and the broader challenges facing the MLM industry.
Modere's Origins and Growth
Modere's story begins with its predecessor, Neways International, founded in 1987. Neways operated as an MLM selling personal care, nutrition, and household products, emphasizing a "clean label” philosophy by avoiding harmful chemicals like parabens. However, Neways faced significant legal troubles, culminating in 2006 when its founders were sentenced to prison for tax evasion. That same year, San Francisco-based private equity firm Golden Gate Capital acquired Neways, rebranding it as Modere in 2013 to distance itself from the tainted legacy. Under new ownership, Modere aimed to modernize, focusing on social retail—a model that encouraged distributors, dubbed "Social Marketers,” to sell through e-commerce and social media rather than traditional party-based sales. By 2015, Modere had fully relaunched, boasting a product line that included liquid collagen supplements, beauty products, and household goods, all marketed as safe and eco-friendly. [Ref web ID: 4] [Ref web ID: 7]
Modere grew steadily, selling over 3 million products globally and operating in 44 international markets. The company's flagship product, Liquid BioCell collagen, gained a loyal following, with customers on platforms like X praising its benefits for hair loss and overall wellness. Leadership changes bolstered its image: Asma Ishaq, who joined after Modere acquired her company Jusuru International in 2017, became CEO in 2018. Ishaq, a celebrated figure in the wellness industry, was named a 2022 Entrepreneur of the Year by Ernst & Young and a Forbes Top 10 Transformative CEO in 2021. Under her leadership, Modere positioned itself as a women-led company, joining initiatives like the Women Business Collaborative in 2022 to promote gender equity in business. [Ref web ID: 7] [Ref web ID: 16] [Ref web ID: 24]
Financial Struggles and Debt
Despite its growth, Modere's financial foundation was shaky. By 2023, the company was majority-owned by Z Capital, a private equity firm that had saddled Modere with significant debt. According to a lawsuit filed by former top distributor Justin Prince, Z Capital used Modere's strong revenues in 2020 and 2021—its biggest revenue year ever—to refinance its debt obligations. However, instead of reinvesting the loan proceeds into Modere, Z Capital allegedly diverted funds for its own benefit, leaving Modere with an "excessive debt load.” This mismanagement, combined with poor decisions by Modere's Board of Directors, led to declining sales and reduced commissions for distributors, including Prince, who had generated over $2.5 billion in revenue for the company. [Ref web ID: 9]
The financial strain became evident by May 2023, when CEO Asma Ishaq privately informed Prince during a meeting in Belize about Modere's looming debt servicing issues and ominous business outlook. Ishaq proposed cutting compensation for top marketers to keep the company afloat—a move Prince warned would further harm sales. By July 2023, Modere's situation worsened, forcing Z Capital to inject $10 million back into the company to cover payroll, commissions, and debt payments. By August, the company laid off nearly 30% of its workforce, and a board member revealed they couldn't afford an investment banker to sell the business without risking bankruptcy. These financial struggles set the stage for Modere's eventual collapse. [Ref web ID: 9] [Ref web ID: 23]
Lawsuits and Distributor Exodus
Modere's closure was not just a result of financial mismanagement; legal battles and distributor defections played a significant role. One of the most prominent lawsuits involved Justin Prince, Modere's top earner and an equity holder. In August 2023, Modere terminated Prince, accusing him of "sabotaging and crippling” the company by planning to launch a competing MLM, Make Wellness, which attracted many former Modere distributors. Modere filed a lawsuit against Prince, while Prince countersued, alleging the company's financial mismanagement and debt burden were the real reasons for its decline. He claimed Modere's actions harmed not only him but also the livelihoods of countless Social Marketers. [Ref web ID: 9] [Ref web ID: 10] [Ref web ID: 19]
Another lawsuit in 2024 further weakened Modere. The company sued former high-ranking distributors, including Amy DeLoof, Kari Lang, and Lisa Simone, for allegedly violating non-compete clauses by poaching Modere distributors to join Frequense, a Texas-based MLM. Modere accused the trio of using company data and relationships to build their businesses, only to orchestrate a mass exodus to Frequense, taking "thousands” of distributors with them. However, a federal judge in Utah denied Modere's request for a temporary restraining order, ruling that the company's contracts with the distributors' businesses—not the individuals themselves—could not enforce the non-compete clauses. This legal loss, combined with the departure of more top distributors in early 2024, exacerbated Modere's decline. [Ref web ID: 4] [Ref web ID: 15]
Modere's legal troubles were not new. Between 2016 and 2018, the company faced lawsuits from competitors like Nerium International, AdvoCare, and distributor Jessie Lee Ward, alleging issues such as salesforce poaching, trade secret misappropriation, defamation, and conspiracy. These earlier lawsuits, while not directly tied to the closure, reflected a pattern of contentious relationships within the MLM industry that likely strained Modere's resources and reputation over time. [Ref web ID: 6]
The Abrupt Closure and Aftermath
On April 11, 2025, Modere shocked its community by announcing its closure with no prior notice to distributors or employees. The company's website was deactivated, replaced with a brief message thanking its "cherished community” for 23 years of support. Employees were given just three hours to clear out, according to a company email shared with The Salt Lake Tribune, and distributors were left without commissions, with some reporting unfulfilled customer orders. The closure came shortly after misleading public statements; a February 2025 press release had announced the hiring of a new Chief Revenue Officer, claiming Modere was "expanding its reach and accelerating growth.” [Ref web ID: 1] [Ref web ID: 4] [Ref web ID: 10]
The fallout was immediate. On X, distributors expressed devastation, with some calling the closure "wild, crazy, and nasty work” due to the lack of warning. Others, like
@SynergyH2HTeam, lamented the impact on distributors who relied on Modere for income. Former CEO Nate Frazier, who had taken over after Ishaq's departure in 2024, resigned just a week before the closure, amid speculation that tariffs on Chinese ingredients—key to Modere's supplements—added further financial pressure. Posts on X also noted that some top earners attempted to rally distributors, promising a new company led by Josh Zwagil of My Daily Choice, though skepticism abounded. [Ref web ID: 2] [Ref web ID: 10] [Ref post: 3] [Ref post: 4]
Broader Industry Challenges
Modere's collapse reflects broader challenges in the MLM industry. The direct sales sector saw a boom during the COVID-19 pandemic, but a "painful correction” began in late 2022, as Modere itself acknowledged in a lawsuit. Rising scrutiny from regulators, such as the Federal Trade Commission, has targeted MLMs for pyramid scheme practices, with companies like AdvoCare and Neora facing penalties. Additionally, the MLM model often leaves distributors in debt, as seen with companies like LuLaRoe, where recruits accumulated credit card debt to meet sales quotas. Modere's own model, which encouraged distributors to buy expensive product packages (up to $699.99) to maximize earnings, likely contributed to financial strain for its Social Marketers. [Ref web ID: 4] [Ref web ID: 11] [Ref web ID: 12]
Conclusion
Modere's closure in April 2025 marks the end of a 23-year journey marred by financial mismanagement, excessive debt, and legal battles. The company's struggle with Z Capital's debt burden, coupled with high-profile lawsuits against distributors like Justin Prince and others, eroded its stability. The abrupt shutdown, with no notice to its community, underscores the volatility of the MLM model, where corporate decisions can devastate the livelihoods of distributors overnight. As the industry faces increasing scrutiny, Modere's story serves as a stark reminder of the risks inherent in MLMs—for both companies and the individuals who invest their time, money, and trust in them.
The post Ken Nielson on MLM Company Modere closing and Growing Business on Count on the Truth Radio with Peter Mingils appeared first on Building Fortunes Radio Network.