Herbalife (HLF) Chairman's Club Distributor Shawn Dahl Resigns
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(Updated - June 24, 2013 1:02 PM EDT)
Herbalife (NYSE: HLF) Chairman's Club distributor Shawn Dahl has resigned, according to a NY Post article issued over the weekend.
The Post said that Dahl was one of Herbalife's top distributors. He and his sales recruits are said to be moving over to Herbalife competitor Nutrie.
Bloomberg affirmed the move via a phone call with the company today.
Though Herbalife said the departure of Dahl was "not material," some speculators still exist. Another top distributor, Anthony Powell, left during first-quarter 2013. Following the move, Herbalife's sales growth was cut in half due to his leaving and subsequent business changes, the Post notes.
Dahl also ran Online Business Systems (OBS), which sold marketing materials and business leads. The operation was banned by Herbalife for distributor use this year, putting Dahl's tenure with the company in question.
OBS was said to come under U.S. FTC scrutiny recently.
Nutrie was said to have been started by Dahl and Glenn Kirkpatrick. Before starting the business, the two said Herbalife would allow them to continue as Herbalife distributors, though Herbalife generally forbids workers from being associated with competing companies. Nutrie also doesn't list either as an owner or backer.
Nutrie was also said to be recruiting top distributors from Herbalife.
Shares of Herbalife are down 5 percent Monday.
Herbalife (NYSE: HLF) Chairman's Club distributor Shawn Dahl has resigned, according to a NY Post article issued over the weekend.
The Post said that Dahl was one of Herbalife's top distributors. He and his sales recruits are said to be moving over to Herbalife competitor Nutrie.
Bloomberg affirmed the move via a phone call with the company today.
Though Herbalife said the departure of Dahl was "not material," some speculators still exist. Another top distributor, Anthony Powell, left during first-quarter 2013. Following the move, Herbalife's sales growth was cut in half due to his leaving and subsequent business changes, the Post notes.
Dahl also ran Online Business Systems (OBS), which sold marketing materials and business leads. The operation was banned by Herbalife for distributor use this year, putting Dahl's tenure with the company in question.
OBS was said to come under U.S. FTC scrutiny recently.
Nutrie was said to have been started by Dahl and Glenn Kirkpatrick. Before starting the business, the two said Herbalife would allow them to continue as Herbalife distributors, though Herbalife generally forbids workers from being associated with competing companies. Nutrie also doesn't list either as an owner or backer.
Nutrie was also said to be recruiting top distributors from Herbalife.
Shares of Herbalife are down 5 percent Monday.
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