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Bankruptcy Filings John Rochon jr John P. Rochon Richmont Capital R-999. Anyone update disposition on the bankruptcy filings?
U.S. Bankruptcy Court Northern District of Texas (Dallas)
Bankruptcy Petition number: 18-32123-sgj7
JRJR33, Inc.
U.S. Bankruptcy Court Northern District of Texas (Dallas)
Bankruptcy Petition number: 18-32124-sgj7
The Longaberger Company
Texas Eastern Bankruptcy Court in Tyler Texas
Case number 4:2018bk41178
R-999
Did JGB Collateral, LLC, the Delaware limited liability company, who had a 'secured' loan against them/Longaberger of $5 mil+ recover their money?
Youngevity (YGYI) with the same model as JRJR now has a market cap of $200 million plus. Stock is traded on Nasdaq @ $8.00. JRJR Networks (JRJR33, Inc.) has a market cap of zero. Declared Chapter 11 bankruptcy, then Chapter 7 liquidation.
Worth studying what made all the difference between these two companies with the same model.
JRJR and Richmont and r-999 had John Rochon as Chairman, CEO, CFO etc. YGYI is run ably by Steve Wallach and Dave Briskie. Founded in similar time frames.
Are they trying to find investors for a new project?
The Internet leaves a trail for the track record of companies like Marketing Specialists, NuKote, Richmont Direct, Longaberger, Your Inspiration at Home, Agel, Kleeneze ..........
Eddie Lampert pulled it off with Sears. How come the Keystone cops couldn't keep milking these cows and then the carcases for personal gain - while stiffing employees, vendors, investors, tax payers, former owners? All while "changing Lives" - as per their JRJR Networks web site headline.
So it's now approaching two years since this post and I am wondering if people who questioned Colleen over the demise of YIAH have noticed that the exact same thing happened at all the companies owned by JRJR. Every single one of them stopped shipping, stopped paying and eventually shut down. I don't know Colleen. I don't know any wrong she may have done. But the evidence certainly seems to place the blame on all the company closures elsewhere now.
The story about the cars comes from the bankruptcy of Richmont which changed its name to R-999 BEFORE filing.
In that filing there were 4 leased Maseratis.
That particular filing is interesting for a few reasons.
First, as noted by Tami Longaberger's attorney it is not the norm to change the name of a business just before filing bankruptcy.
Second, the documents for Richmont/R-999 indicate that cash was kept at a minimum with Rochon senior transferring in just enough to cover various bills.
The bills included the leases on the cars and assorted charges to an entity called BTCC.
I am going to assume BTCC is Bent Tree Country Club.
In addition there were payments made on a loan for Trillium which I believe was going to pay the amounts due to Robert Way and Cohen of Betterware.
John Jr Lives here and all is fine. I have NO idea why anyone thinks they lost their homes or cars.
http://www.dallascad.org/AcctDetailRes.aspx?ID=00000411532000000
Where are you seeing that Rochon's home was in fact taken?
I would really love to ring in 2019 knowing Rochon was homeless but where can we see evidence of this ie. Dallas county clerk of courts or ...??
They had their home repossessed by the hedge fund. Then car dealerships are repossessing their cars. What a fall. What is next?
And the chapter 7 filing says that Richmont holding (R-999, Inc) owes him $17,000,000.00.
Bernie Madoff investors are getting 70% of their money back! Amazing. What will happen with JRjr?
There is a flood of claims being filed. Information must be circulating among salesfield, employees, vendors to file online at
https://ecf.txnb.uscourts.gov/cgi-bin/autoFilingClaims.pl
and use case number 18-32123
So as of today, the JRJR Networks website is GONE! Well, like all the others, it says it is "temporarily down". Yeah, I bet.
Soap Opera Continues.
From today's Newark Advocate, local paper in Ohio: https://www.newarkadvocate.com/story/news/2018/11/24/q-rachel-longaberger-stukey/2077657002/?fbclid=IwAR3IWGkc5ds9CkE-i1jNgI82WxnGYcdArqbEPG_T4u8Lbfe1C7Og5NGDD2I
Soap continues on Facebook. Search for Rachel Longaberger Stukey
Local newspaper, Newark Advocate, publishes story about Longaberger. One quote "A lot of long-time people wanted to stick around, but you could tell they just didn’t want to work for the Rochons.”
Story at https://www.newarkadvocate.com/story/news/2018/11/24/longaberger-basket-empire-once-1-billion-company-more-than-8-000-employees-and-70-000-sales-associat/2064943002/
The 2016 annual revenue in the SEC documents was reported by JRJR to be 144 million.
The bankruptcy gross receipts show 2016 annual revenue at 8.9 million.
Can someone offer some input on this?
Gross receipts and gross revenue generally are the same.
How the hell can you report to the SEC 144 million for 2016 and then report to the bankruptcy court 8.9 million?
Am I reading this correctly?
Per a pre bankruptcy filing with the SEC, JRJR reported 2015 gross revenue of 138,352 million.
In the bankruptcy filings they report 2016 gross receipts of 8,941,681.
Am I reading this correctly???
Cheers for the post Following JR, the real owners are the Rochon's unfortunately not the hedge funds etc., they were just secured or unsecured creditors. Senior and his companies own 56.94% of the shares and Junior 13.45%, so as they own 70%+ of the shares they don't need to ask any of the other shareholders permission to do it. Quite why they are doing it who knows, I would guess it sounds like Senior is going to start up again using the CVSL name!!
This is in the full report on the JrJr website SEC filings section "The purpose of the name change is to better align the Company’s name with its current business model and to rebrand the Company in anticipation of the completion of a Chapter 11 reorganization under the United States Bankruptcy Code, which the Company initiated on June 23, 2018."
Form PRE 14C filed with the SEC by JRjr33, Inc on Oct 31.
It seeks to decrease the total number of shares of the authorized capital stock from 250,500,000 to 2,505,000, and to effect a 1:100 reverse stock split.
And to remove JRJR from name - back to CVSL!
Can anyone share what all this means and why this action is being taken? Is not the company dead? Why bother with all this? Will the real owners, the hedge funds, support or fight this?
Try this on for size: Making Bankruptcy Pay Again. And Again. And Again.
ive been working on it. i even have a great title "hell in a hand basket"
Book being pitched? About the rise and fall of a legendary US company, Longaberger. Mistakes, intrigue, lawyers and bankers, family squabbles, nepotism, incompetence, Hedge funds, greed. Perhaps even some sexual escapades and domestic violence. I think I would buy.
The Longaberger Company just went into Chapter 7 Bankruptcy. A great American company. Dead.
Found a bit more details taken from here:
https://seekingalpha.com/filing/3735142
In connection with the Company’s obligations under the Notes, the Company and its domestic subsidiaries and certain foreign subsidiaries (collectively, the “ Subsidiaries ”) entered into a Security Agreement with the Purchasers and JGB Collateral, LLC (the “ Security Agreement ”) on October 19, 2017, pursuant to which the Company and the Subsidiaries granted a lien on all assets of the Company, subject to certain existing security interests (the “ Collateral ”), for the benefit of the Purchasers, to secure the Company’s obligations under the Notes...................... Each of the Subsidiaries has guaranteed all of the Company's obligations under the Notes pursuant to the terms of a Subsidiary Guarantee, entered into by the Subsidiaries on October 19, 2017 (the Subsidiary Guarantee). John Rochon, the Company's Chief Executive Officer and President and his wife each provided a personal guaranty of certain assets, including real property interests, to guarantee the Company's obligations under the Notes.
I still can't find an address for the property / properties but I don't think it was in Dallas or even Texas but I may be wrong.
Worth maybe $1.5 mill. So, to reach $5 mill, it will include homes of Sr, Jr as well as the two daughters, wouldn't it?
JRjr's house is still in his name at 62300 Waggoner Drive, Dallas TX 45230 according to the auditor website.
Thanks James, I haven't found the details of the house being put up as collateral so far, so maybe I was mistaken but I am still sure I saw it somewhere. There were reports the Rochon's have moved back to Canada, I have no proof of this though seeing as they have deleted all their social media accounts. I do know they were kicked out of / left the JrJr offices and penthouse suite where they were living, as it's up for rent again. All the different businesses were put up as collateral including Trillium Pond which was used to buy Kleeneze and Betterware.
That link was just to take you to the Court's site. You have to have a Pacer account to see the full documents- costs a few dimes. You may be able to access records a different way. Here is case info:
US Bankruptcy Court for North Texas
18-32123-sgj11
You may be correct, I just remember reading through the documents filed and noticed there was at least one house put up as collateral. All the US businesses owned by JrJr were also put up as collateral as well so maybe the hedge fund decided that was enough? We all know what senior's and the dodgy accountants BS valuations of the businesses were so maybe they thought they were quid's in. I think the document is linked further back in the thread so I'll see if I can find it.
I thought the entire family lived in Dallas. One home in Dallas will not equal $5 million (This is not New York or california. This is cowboy country.) Perhaps you add up all the homes of all the family members involved in JRJR?
Cheers for trying James it doesn't work for me, maybe you can give the case number and I may be able to find it that way, Pete.
[url][/url][tag]http://www.txnb.uscourts.gov/[/tag]
Not sure why the link looks like it does or if it will work. However, you asked for the location of the full court documents. They are at that location.
Re the loan by the hedge fund, from what I remember when the loan was signed and the T+C's were put on the JrJr website the loan was secured on one of Senior's houses so it looks like he will lose that, what a shame!!
Can someone tell me where you can view the full filing please, I was hoping they would have to put it on the JrJr website but they haven't, I presume it will be on the court website but which?
I got to see the full document. It lists all the lawsuits aginst JRJR. One is for $2,000. That's such a joke. But I don't see the one with Michael Bishop listed. Why is that? Did he not sue JRJR? Did he choose to JRjr the person instead?
1. Right, but the figures on the document are suspect, considering the last audited financials. Also, do they mean cash receipts? Do they mean shipped receipts? Cash accounting means the cash they collect is income, however GAAP says it's not income until the item purchased is shipped. No context for this receipt scenario.
2. Typically in BK Court a company submits standard financial statements.
3. Agree with you there. However it isn't the BK Court's job to audit the financial statements. It's up to the claimants and their attorneys to dispute the accuracy of this document. See #1.
My point was that this document should not be relied upon to make any opinions about JRJR. I'm sure more complete financials will come out through attorney actions.
1. "That document has no context"
a. The context is the larger document submitted to the bankruptcy court referenced at the top
b. That entire document is now public record and can be accessed by anyone
c. JRJR was compelled to submit this as part of the bankruptcy process
2. "Isn't a standard financial statement"
a. It isn't intended to be
b. No surprise. When was the last time JRJR submitted anything close to a standard financial
statement?
3. "Is not audited"
a. Because all auditors are double crossers and not reliable as explained by JRsr in the last conference
call. Ha!
b. I would imagine the bankruptcy court is auditing these numbers right now
That document has no context, isn't a standard financial statement, and is not audited.
Does that mean that the Hedge Fund that gave money was investing in Richmont (and Richmont invested in JRJR, who then dumped it down the drain into agel and Kleeneze etc)??
So, is Richmont on the hook to the Hedge Fund? Does that create personal liability for the family?
Would be keen to connect with someone offline as a group of us (shareholders) in Australia are looking at making a claim but need some insight as the laws here in AU are different.
1. Wonder if these numbers include asset liquidation as well as gross sales?
2. In the last conference call, didn't JR say he had personally fronted money? Could the last two lines be cash infusions needed to stay open?
Longaberger was actually on an upswing? And why would there be Jrjr receipts from Rochon/Richmont? (Wasn't money flowing the other way?)
Someone told me (an ex-LB consultant) that they were asking them if they could send them a link for a webinar or something for Yungevity? She said no... called them crooks... hung up. So that's all I know. LOL.
Rochons trying to exploit the situation? Word on the street is that he Direct Selling Association and the bankers GB Capital havereceived complaints that JRJR33 maybe trying to bring the longaberger salesforce together to join another direct sales company. Anyone know if this is true?
Brenton Baker probably got screwed too. Maybe less screwed than everyone else. But screwed. Including his insurance, his 401k. Guess who didnt get screwed in this whole thing? BOD members, Lenders, Employees, owners of companies who sold, salesforce, investors, tax authorities, vendors, landlords. Everyone got screwed. But one.
And I am told they changed the vanity license plate from JRJR33INC to SCRWD ALL.
So Brenton Baker who was part of the whole JRJR Networks ring and who apparently got a huge payout for fing everyone over just announced that he is now a realtor at some outfit in frayzeyzburg called Lepi and Associates. I say we F him over like he did all of US! Must be nice to participate i the screwing and then move on.
Need to file a claim against JRJR? Just google HOW TO COMPLETE A PROOF OF CLAIM:
A PRIMER FOR NON-BANKRUPTCY PRACTITIONERS and you will get some good solid info. Thank You to ex employee of JRJR who posted on facebook.
Happenings Magazine is operated by John Rochon Sr's Daughter.
JRJR filed today :
http://otce.finra.org/DLSymbolNameChanges
The Rochons are in no financial straits at all. Basically, they bought up companies with lots of assets, paid in part or in whole with JRJR33 stock, sold everything to the walls, stripped the companies of operating funds through fees, and then sent the money to Julie R in Russia. They put up for collateral the trademarks and names and intellectual property as a final f-you to everyone in exchange for an extra 5 million on the way out the door from a stupid company who are now going to join everyone else in the big cry-fest as they are left with nothing. NOTHING. JRJR Networks and Richmont Holdings are seeking chapter 7 & 11 bankruptcy. JGB is holding a bunch of CRAP that they thought was worth something... and it's up to THAM to battle with everyone over the little bit of nothing that is left. The Rochons are sitting on BILLIONS and paid NOTHING. And yes, this was their plan all along as it is not their first rodeo. These cowboys knew exactly what they were up to when they rode into town. That's why they brought with them teams of individuals whose job it was to sell/liquidate in particular kinds of assets: property, vehicles, office equipment, etc. That's also why they didn't give a crap about the consultants other than to motivate them to SELL SELL SELL the leftover inventories. They are genius... not moral... but genius at what they do, and they will do it again under a different name and in a different place. But hold on to that "worthless" JRJR33 stock, my children. Right now JGB is trying to force it's sale by Rachel and Tami. And guess who's salivating at buying it? Yup- the old man himself JR Sr!
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