IHI gets 4.2M investment, slashes staff
Triangle Business Journal
International Heritage Inc. announced Thursday that it has received commitments for $4.2 million from a group of European investors.
The funds will assist the company as it struggles financially in the wake of actions against IHI by the Securities and Exchange Commission, which has accused it of operating as an illegal pyramid scheme. A number of related class-action lawsuits have also been filed against IHI. IHI counters that it is a legitimate multilevel marketing company.
To reduce costs, IHI said that it has laid off an unspecified number of part-time and fill-time personnel.
IHI also restructured its executive team. Ken Rudd was named executive vice president in charge of all company operations, while John Brothers was named executive vice president with the responsibility of seeking out additional capital. IHI said it undertook the measures so that President and Chief Executive Stan Van Etten could "focus his time on investor relations, settlement of the SEC action and other civil litigation, international expansion and opportunities for working toward profitable continued growth."
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