Omegatrend
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Omegatrend is an Australian based multi-level marketing company. It was founded in 1990 in Perth.[1]
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[edit] History
In the late 1980s, Amway undertook efforts to enforce its rules of conduct relating to the distribution of non-Amway sanctioned products through its distributor network. As a result, then Diamond Amway members Loren Watts and Sandra Watts left the company to start Omegatrend in 1990 to which they were able to attract a significant number of direct-level distributors to their new entity.
As a result of their actions, Amway instituted legal proceedings against Omegatrend[citation needed] which it subsequently lost[citation needed].
Expanding initially across Australia, the company opened in New Zealand in 1995, Malaysia in 1997 and Singapore in 2003. In July 2005, Omegatrend initiated a Rapid Global Expansion Program that sees new markets open in Hong Kong, the Philippines, the United States of America, the United Kingdom, South Africa and Brunei. Omegatrend now operates in Australia, New Zealand, Malaysia, Singapore, USA, U.K., South Africa, Philippines, Hong Kong and Brunei.
The company now is a member of Direct Selling Associations of Australia, Malaysia, Singapore, and New Zealand and subscribe to their code of conduct, as part of its efforts to demonstrate the integrity of the company in the context of the global multi-billion dollar Direct Selling industry.
[edit] Financial Issues
In May 2006, the organisation engaged administrators from the insolvency accounting firm PPB to look into possible financial problems of the company.[2] This was due to financial difficulties caused by a combination of falling sales, and huge project cost overruns with the development of new global markets and sophisticated global computer software systems.
At the time of PPB's engagement, Omegatrend's suppliers were owed $AUD 2 Million. Omegatrend's directors have said they are fully committed to preserving all members' rights and to fixing the group's financial problems[citation needed]. Business transactions and functions with most of the countries from the Rapid Global Expansion Program have since been suspended[citation needed].
On July 20, 2006, Graeme Clegg, Chairman of listed company The New Image Group, announced that their subsidiary New Image International had successfully negotiated the purchase of Omegatrend International from the Australian administrators. The transaction required final approval at a creditors meeting in Perth the following week[citation needed].
The New Image Group has indicated that Omegatrend group will continue independently, but will have access to the New Image nutritional supplement range of products.[citation needed] It is intended that the Omegatrend group will continue with additional working capital and will progress implementing an enhanced compensation plan, and will focus on developing the four key product markets of Home Care, Beauty, Services and Nutritional supplements, with the intent to deliver improved profitability for all stakeholders in these categories.
[edit] References
- ^ History and Mission. Omegatrend (2006). Retrieved on 2007-04-09.
- ^ New York Post 10/06/06
