By leah jones
Wellness company, Modere abruptly announced it would be shutting down after 23 years on Apr. 11 after no prior indication or explanation to customers, distributors or employees.
Modere is a Utah-based multi-level marketing (MLM) health and wellness brand that specializes in a range of "clean-ingredient" products for weight loss, skincare and much more.
It was a large direct-selling company, meaning wholesale products were sold to independent sellers who then sold those products to others as their own business.
This has left consumers and distributors concerned about their orders and subscriptions. There has also been outrage over the company's short notice to its staff.
An email to employees sent about three hours prior stated they had until 5 p.m. that day to return company property and collect personal belongings, after which the doors would be "closed forever."
Modere has not specified what led to its abrupt shutdown. However, several factors, such as finances and the company's legal issues, are believed to be contributing factors.
Modere faced difficulties due to shifting consumer behaviors and increased competition, as have many direct-selling companies after the pandemic.
The company acknowledged a "painful market correction" beginning in late 2022 after an increase in pandemic sales which it said necessitated actions to "ensure profitability."
Modere filed a lawsuit against former top-tier contractors for allegedly attempting to "poach" its distributors. However, the case failed to secure a temporary restraining order.
Among other legal disputes were a pending trademark infringement and a lawsuit against ex-contractor Justin Prince alleging he "sabotaged and crippled" the company.
No specific updates regarding pending orders or refunds have been shared by Modere. However, customers are still able to contact its customer service.