MarketWatch reported Blyth's ViSalus unit
pulls plans for IPO.
“Blyth Inc.'s nutritional supplement unit,
ViSalus Inc., withdrew its plans for an initial
public offering.
Stocks plummeted more than fourty percent
from a high of fourty six dollars in mid August
to eighteen dollars.
The Wall Street Journal reported a credit
downgrade for Blyth.
Moody's Investors Service lowered its credit
ratings on Blyth to negative from stable last
week, citing continued weakness in its core
direct selling candle and home-fragrance business,
as well as uncertainty stemming from the IPO
of ViSalus.
The ratings firm also said the outlook reflects
Blyth's growing reliance upon ViSalus and
the heightened risk profile associated with
its business model and the weight-management
product category generally in comparison to
candles and fragrance products.
In related news..according to Shareholders
Foundation, Blyth Inc. faces investigation
over possible violations of securities laws.
An investigation on behalf of investors of
Blyth, Inc. shares over potential securities
laws violations by Blyth, Inc. and certain
of its directors and officers in connection
certain financial statements was announced.
The investigation by a law firm focuses on
possible claims on behalf of purchasers of
the securities of Blyth, Inc. concerning whether
a series of statements by Blyth, Inc. regarding
its business, its prospects and its operations
were materially false and misleading at the
time they were made.
In addition to the securities laws investigation,
there are SEC filings and developing class
action lawsuits against Blyth and ViSalus.
We will keep you informed as this story continues
to develop.
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