ForeverGreen in the Salt Lake Tribune
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A 5-year-old Orem-based network marketing company is struggling under the twin challenges of financial losses and a legal attack by a vendor that is turning itself into a competitor.
ForeverGreen Worldwide Corp., a seller of natural food, nutritional supplements and personal-care products, lost $1 million in 2008, had a deficit of $1.8 million in cash available for daily operations and ended the year with a deficit of $18 million accumulated over its five years of operation, according to its annual report filed this month with the Securities and Exchange Commission.
In addition, Wellosophy of Folsom, Calif., has sued in federal court alleging ForeverGreen has failed to pay it about $75,000 for supplying a weight-loss product. The suit also claims the Utah company is violating its contract by continuing to market the product and it asks for an injunction.
Paul Frampton, ForeverGreen chief financial officer, said Wednesday the company has sufficient backing to weather the financial strains. He acknowledged there had been a disagreement over invoices after the weight-loss product called Form began piling up in the company's warehouse because it has not been selling well.
"We're happy to work it out," Frampton said. "Unfortunately that doesn't seem to be the intent of the suit."