Longaberger: Temporarily Without Access to Operating Cash

(Longaberger Press Release)

Together with the commitment and dedication of our Sales Field and Customers, we have weathered some extremely difficult times. Now is one of the most challenging times we have ever faced.

We have all worked hard to maintain sales, reduce overhead and manage expenses. We believe these cost savings measures alone will eventually put us into a strong position for moving forward. However, at this time, our senior Bank lender is sweeping our cash daily, leaving us temporarily without access to operating cash to run the business or make statutorily required payments, like sales tax and payroll tax.

Until clear resolutions are reached with the lender and certain others who seem intent on obstructing our path to success, the management team has directed the company to suspend certain operational functions, including the call center, until additional capital is secured.

Because we understand that you need access to your business information, your Consultant Back Office will remain available at this time. While your customers may still be interested in ordering, we ask that you do not close and process any orders until we know those orders can be timely filled.

As soon as these issues are resolved, we look forward to getting back to business and resuming commission payments. We appreciate your patience and thank you for your continued and loyal support.