Stemtech International was founded in 2005 by Christian Drapeau and Ray Carter. The company is currently based out of Florida and operates in the nutrition MLM niche.

BehindMLM
reviewed StemTech
in 2012 and found the company had a strong focus on autoship affiliate recruitment.

Over the last eight months Alexa traffic estimates for the StemTech website indicate a consistent month to month decline in business.

In 2016 StemTech’s gross revenue was $43.5 million, down from $52.5 million in 2015.

On February 2nd, 2017, StemTech filed for Chapter 11 bankruptcy.

In their Chapter 11 filing, StemTech cite 1 to 49 creditors and assets of between one and ten million.

The amount StemTech currently owes its creditors is in the vicinity of $5 million dollars.

The twenty largest unsecured amounts owed to creditors are as follows:

Andrew Paul Leonard (amount disputed) – $1.6 million

Wilhelm Keller (loan) – $772,000

Cerule LLC (raw materials supplier, 
amount disputed
) – $685,838

Marinova PTY LTD (raw materials supplier, amount disputed) – $554,000

Nixon Peabody (legal services) – $163,183

Chelsea Investments (rent) – $151,450

Hollins & Schechter (legal services) – $150,605

Federal Express (shipping) – $148,537

American Express (credit card fees) – $135,348

Andrew Goodwin (loan) – $100,000

Hutcheson Bowers (legal services) – $84,851

Berkowitz Pollack (accounting services) – $94,407

Energy Tools International (inventory) – $90,173

United Data Technologies (IT consulting) – $58,690

Lozeau Drury (legal services) – $58,000

Fusion Packaging (raw material supplier) – $38,208

Environmental Research Center (settlement) – $36,792

AIDP Inc. (raw materials supplier) – $32,440

Broad and Cassel (legal services) – $29,973

California EPA (settlement) – $21,000

Reasons cited for StemTech’s bankruptcy are:

a 2008 lawsuit filed by Andrew Leonard for $1.6 million (StemTech
lost their appeal
last year)

(Andrew Leonard) has vigorously pursued collection efforts.

These efforts have included an attempted levy against treasury stock and, more recently, the Judgment Creditor sought the appointment of a receiver for purposes of liquidating the patents and for an assignment of the equity interests in certain subsidiaries.

Cerule’s 2016 lawsuit for alleged
non-payment of products supplied

The (Cerule) litigation has been costly and depleted cash which would otherwise be used for day-to-day business operations.

These costs, coupled with losses stemming primarily 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.

failure to make lease payments

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.

As I write this there’s no mention of StemTech’s bankruptcy on their website or social media profiles.

“Company News” on the StemTech web

🤖 Quick Answer

What is StemTech International and what led to its bankruptcy filing?
StemTech International, founded in 2012 by Christian Drapeau and Ray Carter, was a Florida-based nutrition MLM company. The company experienced significant financial decline, with revenue dropping from $52.5 million in 2015 to $43.5 million in 2016. Consistent website traffic declines preceded its Chapter 11 bankruptcy filing on February 2nd, 2017.

What were the financial details of StemTech's bankruptcy?
StemTech filed for Chapter 11 bankruptcy with assets between one and ten million dollars and liabilities of approximately five million dollars. The company listed between one and forty-nine creditors in its filing documentation, indicating substantial accumulated debt obligations.

What business model did StemTech operate?
StemTech operated in the nutrition multi-level

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