topic Re: Mally in bankruptcy in Beauty

Mally in bankruptcy

Monamar — Wed, 29 Jul 2015 21:44:07 GMT

How terrible to hear that her company filed for bankruptcy. In fact, I believe the company was bought up in June.

Re: Mally in bankruptcy

ChynnaBlue — Wed, 29 Jul 2015 21:41:22 GMT

Yep, we spent a lot of time talking about this in June. I think that those posts were lost when they switched forum software.

Re: Mally in bankruptcy

Monamar — Wed, 29 Jul 2015 21:45:08 GMT

Thanks for the update. I don't get on too often and had read about it on the another website.

Re: Mally in bankruptcy

ChynnaBlue — Wed, 29 Jul 2015 21:55:12 GMT

I'm just glad she seems to have it sorted now. She mad no appearances on QVC for around 6 weeks and people were concerned because she had been one every week. She did have a TSV on QVC UK during that time, but was missing from the US air until sometime this month.

Re: Mally in bankruptcy

ROMARY — Wed, 29 Jul 2015 21:56:13 GMT

It's hard to believe, but sometimes it's a company/corporation that is bankrupt on paper, and not the individual owners/persons. Something regarding tax shelters, taxes, or whatever else. Probably very common. Sometimes they re-organize, etc. So complicated, but corporation attorneys would know.

Re: Mally in bankruptcy

Tinkrbl44 — Wed, 29 Jul 2015 22:10:20 GMT

@ROMARY wrote:
It's hard to believe, but sometimes it's a company/corporation that is bankrupt on paper, and not the individual owners/persons. Something regarding tax shelters, taxes, or whatever else. Probably very common. Sometimes they re-organize, etc. So complicated, but corporation attorneys would know.

I wasn't under the impression that it was Mally personally bankrupt, but the company.

Can anyone else confirm this?

Re: Mally in bankruptcy

HappyDaze — Thu, 30 Jul 2015 01:17:52 GMT

@ChynnaBlue wrote:
Yep, we spent a lot of time talking about this in June. I think that those posts were lost when they switched forum software.

lol, yes, magicaly those didnt seem to "make it".

Re: Mally in bankruptcy

Snoopp — Thu, 30 Jul 2015 10:51:40 GMT

I would be concerned about not getting the product if they are in bankruptcy.

Re: Mally in bankruptcy

Icegoddess — Thu, 30 Jul 2015 15:30:14 GMT

QVC was one of the creditors she tried to leave hanging in the wind when she tried to sell her company to pay only for bank loans, and not other creditors which is what forced her into bankruptcy. From what I understand, QVC had bought a lot of product from her that, I guess, they felt they wouldn't be able to sell if the company was sold. Or maybe they had paid for the product and she hadn't delivered on it.

I sorta wondered when I saw she was back if she was only trying to clear out the remainder of product that QVC had bought.

Re: Mally in bankruptcy

Tinkrbl44 — Thu, 30 Jul 2015 15:48:41 GMT

@Icegoddess wrote:
QVC was one of the creditors she tried to leave hanging in the wind when she tried to sell her company to pay only for bank loans, and not other creditors which is what forced her into bankruptcy. From what I understand, QVC had bought a lot of product from her that, I guess, they felt they wouldn't be able to sell if the company was sold. Or maybe they had paid for the product and she hadn't delivered on it.

I sorta wondered when I saw she was back if she was only trying to clear out the remainder of product that QVC had bought.

Wait ..... QVC actually PURCHASES the product it sells on TV?

I was always of the understanding that everything is "on consignment".

Re: Mally in bankruptcy

Icegoddess — Thu, 30 Jul 2015 16:07:29 GMT

@Tinkrbl44 wrote:
@Icegoddess wrote:
QVC was one of the creditors she tried to leave hanging in the wind when she tried to sell her company to pay only for bank loans, and not other creditors which is what forced her into bankruptcy. From what I understand, QVC had bought a lot of product from her that, I guess, they felt they wouldn't be able to sell if the company was sold. Or maybe they had paid for the product and she hadn't delivered on it.

I sorta wondered when I saw she was back if she was only trying to clear out the remainder of product that QVC had bought.

Wait ..... QVC actually PURCHASES the product it sells on TV?

I was always of the understanding that everything is "on consignment".

If that's the case, then QVC could not have been a creditor.

I'm only going by what I remember from the link to the news article that explained the complaint which was a little complicated. Since that thread didn't make it over here, I don't have the link.

I did find this article which states she owed QVC $118,000. https://homeshoppingista.wordpress.com/2015/05/18/mally-roncals-makeup-firm-lands-in-chapter-7-bankruptcy/

Re: Mally in bankruptcy

ProductGuy — Wed, 05 Aug 2015 11:34:57 GMT

Friends who used to sell on HSN told me that QVC, HSN, etc., do buy the products, but the vendor is often put in the position of having to buy back if they don't make their numbers. They measure in units per minute sold as opposed to dollars. That's why you always see vendors glancing over to the side. They're watching the monitor that's showing them how many have sold, how many people are on the phone, how many people are on hold, how many people are online. It was an amazing process to watch.

Re: Mally in bankruptcy

swanee — Wed, 05 Aug 2015 17:42:20 GMT

Years ago, I read that the Q.outright owns 50% of the product presented. The vendor has to sell that 50% that Q owns before they make any money. The vendor also has to pay the Q 20% of the vendor's share. That's why there is a Q team for the vendors, especially in fashion and jewelry. Q knows what sells and wants to make sure they get their 50% + . If some of you read Louis dell Olio's non Q blog, he frequently mentions that the Q team won't reorder something or won' t let him design in talls or petites, that's why.

This news is probably at least 15 years old, so things may have changed.

Will I get proofed?

Re: Mally in bankruptcy

CoG — Wed, 05 Aug 2015 18:06:25 GMT

Why start RUMORS ? We don't know anything. Why tarnish Malley's reputation ? Why assign guilt where guilt doesn't belong ?

I respect Malley's because she listened to her customers , to me personally , and followed through on her promise . That I KNOW.

It was heartbreaking to watch her stoically face her audience, under the constraints of legal obligations and restrictions and hold back her tears. Why cause her further injury?

Re: Mally in bankruptcy

Icegoddess — Thu, 06 Aug 2015 03:21:01 GMT

The reason I'm interested is I don't want to buy a product that I might fall in love with only to have it discontinued because of the bankruptcy. Too many of my favorites get discontinued as it is, so why would I want to walk into that possibility.

Also, if she has only come back to the Q to fulfill her obligation to sell product that has been sitting in the warehouse, the product might be old.

Re: Mally in bankruptcy

febe1 — Thu, 06 Aug 2015 03:46:32 GMT

If Mally's company goes bankrupt, I'm sure Mally has percentage ownership in the company. I've watched her since all that, but I haven't bought anything. She's selling bundles of mascara and eyeliners. When I see bundles, I never buy. It just means to me they're getting old. And I know they have a "shelf life," but I don't think they're shipping product right out of the factory.

It's too bad, b/c I thought Mally had a fair to midlling product. Perhaps Mally is forced to be the "face" of the product even though owned by others.

Re: Mally in bankruptcy

JumperRider — Sun, 17 Apr 2016 16:04:35 GMT

Hi Icegoddess,

I realize this response is really late in the game but though I would respond anyway. I would not worry not purchasing a Mally product because you are afraid of falling in love with something from her ilne and the potential discontinuance of the item since that type of thinking contributes to market loss for her company and, if widespread, that has an imact on her bottom line. In the event a product you love does get discontinued by any manufacuerer a lot of items can be reproduced by reputable companies out there that specialize in doing just that. Chances are it would be the same company making the product just running through a differnt organization under a different name. Think of it like car parts, in the auto industry there are several major bearing manufacturers and you will see their names on the part that is on your vehicle as it was built from original assembly. When you need to replace one, your mechanic can buy the same part that came off your vehicle with a different name but it is made by the same company in the same manufacturing facility on the same production line as the one that the mechanic took off of your vehicle. The part manufacuter just puts a different brand name on it and sells it for less because you are not paying for their brand name recognition.

I feel the same way you do with colors and products, but now there are options when back in the day there were not. Just google discontinued products (perfume is a good example and so is lipstick) and you will see that you can have something reproduced for you if the item is no longer available. Chances are if she has a strong following, someone would likely buy the company and keep her on board for creative reasons since she is the name and face of the brand. I am not going to speculate why the company is or was in financial trouble as there are so many things that could be contributing factors (bad management, poor financial risks, someone made too many errors in procurement and production areas). I don't know how large her company is, but I am sure there are multiple layers there that take care of the day to day operations from front line positions to the CFO and anywhere along that chain there could be disconnects. I hope she has or will recover from whatever caused the issued and comes out stronger as a person and a brand.