OKLAHOMA CITY (AP) _ Blue Stuff Inc., a company that made millions selling an emu-based goo touted for its health benefits, will be sold by its creditor, IBC Bank, on Oct. 1, the company said in a statement.
Debra Murray, company president, had said previously in a letter to shareholders the company was having financial difficulties relating to a strategy shift away from direct retailing to wholesaling its product to retail stores.
The company, founded in 1998 by Jack McClung, announced Monday that it would be surrendering its assets to the bank.
Steve Brown, company vice president for marketing, said the company that buys Blue Stuff's assets is expected to continue to sell the product.
Company sales hit $82.9 million in 2002.
The Oklahoma Venture Forum and the Oklahoma Investment Forum honored it with the 2003 Venture of the Year award. But the company also agreed to pay $3 million to settle a Federal Trade Commission complaint that it made unsubstantiated claims about the goo's pain-relieving qualities.