According to its own statements, the company produces health-related clothing. But after an injunction against advertising with health claims, for example for socks, the spots were stopped. According to creditor protectors, this has led to a decline in sales and the company has now filed for insolvency.
- From the archive: Neuro Socks: miracle cure or label fraud?
The liabilities are 6.2 million euros and the assets are 1.2 million euros, the AKV reported on Tuesday evening. According to KSV1870, the debtor originally set up a powerful direct sales system for its “Neuro products” via so-called business partners who work in a multi-structured, commission-based manner. There are currently around 1,000 business partners active.
Known from Mediashop
In 2019, “Neuro Socks” gained a partner for broader marketing of the products in Mediashop GmbH, which offers a wide range of products on advertising TV. Mediashop took over wholesale and television advertising. After 2020, however, there were various legal proceedings with the Association for Consumer Information (VKI) over the health-related claims – which were ultimately lost. As a result, there was a sharp drop in sales as well as legal disputes with the main supplier, which constituted grounds for insolvency.
The company now wants to restructure itself and continue to operate. The first restructuring measures have already been taken. The insolvent company offers creditors a quota of 30 percent payable two years after acceptance of the restructuring plan in self-administration. The quota is checked by the creditor protectors for appropriateness.