Burr & Forman partner Erich Durlacher was quoted in an article titled “MLMs Face Death By a Thousand Less Recruits” published by The Deal. The article provides an overview of Rodan & Fields’ rise and ultimate slide to its current state of losing consultants, resulting in layoffs of core employees and settled class-action lawsuits.

It also reviews the current state of large Multilevel Marketing (MLMs) firms in general and the growing saturation of that market resulting in poor consultant recruiting efforts – the backbone of MLM sales models. Without new recruits, these companies have few permanent employees, small amounts of assets and very little that can be restructured.

"I don't see how this is anything other than a liquidation," said Durlacher. “The one thing they could do, through a 363 sale, is to sell some proprietary skin care products and processes, package them off and sell them at a discount ... There could be some value there, and the lenders might be pushing for that."

Durlacher practices in creditors’ rights, bankruptcy, and lending. He represents clients in the resolution of complex commercial issues, the restructuring of performing and distressed credit facilities and swap agreements, and the maximization of debt and collateral recovery.