Blue Stuff Inc., the company that makes a cream designed to ease aches, has been sold. But apparently little has changed except the name of the controlling company.
Steve Brown, vice president of marketing, said the company is operating under the auspices of Blue Spring International, a limited liability company registered to the home address of former Blue Stuff president Debra McClung Murray. She is the daughter of Blue Stuff founder Jack McClung.
McClung, former Blue Stuff chairman, is not an owner or officer of the new company, but Blue Spring said McClung remains an advocate of the products he invented.
Murray has been named managing member of Blue Spring International and is a principal in the new company, Blue Spring said in a statement issued through Brown.
Blue Spring bought all of Blue Stuff's assets, and the company will continue to sell the same products using the Blue Stuff brand names. Blue Spring will move into Blue Stuff's offices at the Waterford complex in northwest Oklahoma City.
Most Blue Stuff employees were retained after the sale.
"Blue Spring expects to continue all former Blue Stuff operations without significant changes, the statement said. Last month, Blue Stuff said its creditor, IBC Bank, would sell its assets Oct. 1.
The company, in a statement issued through Brown, said it would surrender its assets to IBC Bank on Sept. 30 and stop doing business as Blue Stuff Inc.
"IBC Bank is selling these assets to our knowledge essentially as a single entity Oct. 1, the statement said. "The company that buys these assets is expected to continue to sell Blue Stuff products with interruption.
Brown on Friday said that customers' orders were being filled.
McClung founded Blue Stuff in 1998 to sell an emu based ointment touted for its pain-reduction benefits. Blue Stuff sales hit $82.9 million in 2002, and the company won a statewide business award as 2003 Venture of the Year.
But the company's popular infomercial ran afoul of federal regulators for making unsubstantiated claims about the health benefits of the concoction. The company paid a $3 million fine to the Federal Trade Commission to settle the case.
In November, McClung named Murray as Blue Stuff president.
Last year, Murray disclosed in a letter to shareholders that the company was suffering financial problems while shifting its focus from direct marketing to wholesaling its products to retail stores.
Shareholder Judy Armstrong said she and other frustrated stockholders haven't heard from the company for several weeks.
"We got a letter outlining that they were going to turn over assets to the bank and they were sure sorry that we lost our money, Armstrong said.Archive ID: 2080906