A Focus On Autoship Recruitment Has Caused StemTech To File For Chapter 11 Bankruptcy

Stemtech ReviewRecently, Stemtech has been getting a lot of hype on the internet. You may have even heard that StemTech has had to file to Chapter 11 Bankruptcy.

I have had people pitching this one to me on a near daily basis, in fact, and I have seen it making the rounds on social media as well.

I want to make it clear I am NOT promoting this business opportunity as an affiliate or distributor in any way.

I have done all my research in this Stemtech review do you can learn the honest truth and decide if it’s right for you.

Is Stemtech a scam? Is it legit?

Can it really deliver on it’s promises?

Let me tell you in my Review Stemtech.

Let’s get started.

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Seriously, What Is Stemtech?

StemTech International is the name of a company that was originally founded all the way back in 2005 by the tag team of Christian Drapeau and Ray Carter. StemTech International is based and run out of Florida in the United States, and a quick look at the company reveals that it operates in the niche of health/wellness and nutrition – a field that has proven to be incredibly profitable and popular when handled correctly.

The company got particularly popular and buzz-worthy around 2012, and after looking through the compensation plan that StemTech Intentional is offering, it doesn’t take long to realize that this is a company that heavily operates in the field of autoship affiliate recruitment.

This is a move that’s often seen with opportunities that are trying to make a buck in the health and wellness niche, but it’s one that usually proves to be quite fatal at some point later on down the road.

In the case of StemTech International, there doesn’t look to be any exception to this rule.

According to official Alexa rankings, overall traffic for the StemTech website has been at a rather steady decline over the past eight months or so. The company’s gross revenue last year in 2016 was $43.5 million, and while this might sound like a good chunk of money on its own, it’s down quite a lot from 2015’s reported revenue of $52.5 million.

Fast forward to just a few days earlier on February 2nd of 2017, and StemTech International has officially filed for Chapter 11 bankruptcy.

According to the Chapter 11 filing that was put into motion, StemTech currently owes various creditors it’s in cahoots with a whopping total of around $5 million.

The Chapter 11 filing also highlights which creditors StemTech International owes money to and for what reasons, and the twenty biggest people that are expecting money from the company include –

  1. Andrew Paul Leonard – $1.6 million (amount is currently being disputed)
  2. Wilhelm Keller – $772,000 for a loan that was given out to StemTech International
  3. Cerule LLC – $685,838 for raw materials that were supplied (amount is also being disputed)
  4. Marinova PTY LTD – $554,000 for more raw materials (actual amount is currently being disputed between the two parties)
  5. Nixon Peabody – $163,183 for various legal services that were given to StemTech
  6. Chelsea Investments – $151,450 for unpaid rent
  7. Hollins & Schechter – $150,605 for more legal services that have yet to be paid
  8. Federal Express – $148,537 worth of unpaid shipping bills
  9. American Express – $135,348 worth of unpaid credit card fees that StemTech International charged while in operation
  10. Andrew Goodwin – $100,000 for a loan that Andrew made out to the company that has yet to be paid back
  11. Hutcheson Bowers – $84,851 for even more legal services that are still unpaid
  12. Berkowitz Pollack – $94,407 for accounting services that were never given compensation for
  13. Energy Tools International – $90,173 worth of inventory services that StemTech has failed to pay
  14. United Data Technologies – $58,690 for IT consulting services and classes
  15. Lozeau Druy – $58,000 for legal services
  16. Fusion Packaging – $38,208 worth of raw materials that were never fully paid for
  17. Environmental Research Center – $36,792 for settlement
  18. AIDP Inc. – $32,440 for additional raw materials
  19. Broad and Cassel – $29,973 for legal services that StemTech never followed through with in regards to payment
  20. California EPA – $21,000 for the settlement

Stemtech Scam

Just what is StemTech International’s reasoning behind this filing though?

According to the company, there was a lawsuit that was filed back Andrew Leonard in 2008 for $1.6 million (the same Leonard and $1.6 million that is cited above).

In that lawsuit, Leonard actively and viscously pursued collection for money that StemTech owed him, and he ended up defeating the company in said lawsuit.

On top of this, there was another lawsuit filed against StemTech International in 2016 by Cerule LLC.

As per that filing, “The (Cerule) litigations has been costly and depleted cash which would otherwise be used for day-to-day business operations. These costs, coupled with losses stemming primary from foreign currency adjustments, have resulted in Debtor defaulting on the Converted Line and Term Loan, both of which are scheduled to mature on December 1, 2016.”

Last but not least, StemTech also failed to make lease payments that they were responsible for paying.

According to the filing, “On January 30, 2017, the Debtor’s landlord served a three (3) notice of default and opportunity to cure relating to the Debtor’s corporate headquarters lease.”

At the time of writing this article, there’s no information available on the official StemTech website in relation to the bankruptcy filing that is currently taking place. The “Company News” section of the site interestingly enough delivers and error message that says the feed for company news is currently unavailable.

The last time that StemTech posted anything on their Facebook page was February 2nd, with this being published for the sole purpose of promoting one of the company’s products (DermaStem Lift to be exact).

What will StemTech International’s next step be? Only time will tell.

Seriously, Is Stemtech A Scam Or Is This Legit?

As I am sure you have heard with most business opportunities, there are a lot of scams on the internet, and Stemtech might be a scam with them.

Having read the review above, you might be wondering if Stemtech is legit or completely a scam.

So, is it a scam?

Is Stemtech a scam, or can you make a proper business with it?

Honestly, Stemtech isn’t a complete scam, but there are definitely some things to be aware of (see the conclusion section).

Whether you decide to join or not, you really need to master your marketing and lead generation.

This is the only way you will be successful.

See below for help with making money online.

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Here’s My Stemtech Final Thoughts!

 

Hopefully, you have enjoyed this Stemtech Review.

I wanted to give you this in-depth review because there have been plenty of other Stemtech reviews that don’t really give all the information you need.

If you do decide to join, I want you to be successful, so learn how to market yourself properly.

My FREE training below will help you market and earn money!

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