Vacuum-cleaner maker Oreck Corp. filed for bankruptcy-court protection to begin a sale process that could put the 621-worker company back in the hands of founder David Oreck and his family. Executives who put Oreck under Chapter 11 protection on Monday blamed the company's financial hardship on increased competition. They also cited a push to sell vacuum cleaners and other products in its 96 retail stores rather than directly to consumers—a transition that has come with a "greater delay and costs than anticipated," according to papers filed with the U.S. Bankruptcy Court in Nashville, Tenn. The company, which assembles vacuum cleaners at a 250-worker plant in rural Cookeville, Tenn., said in court papers that sales have declined since 2010. "The [companies] simply cannot generate cash fast enough to cover expenses as they arise," said Oreck's bankruptcy attorney, William L. Norton III, in court papers. Mr. Norton said in an interview that the company plans to sell its operations and that some members of the Oreck family are putting together a bid to buy back the company.

That offer could become the lead bid at a bankruptcy auction that the company could hold within weeks, he said. Mr. Oreck founded the company in 1963 to manufacture lightweight, upright vacuum cleaners in an era when many models were bulkier and heavier, according to the company's website. nature air duct cleaning homestarsThe company began selling vacuums to hotels and later began to target the residential market. zon max air purifierIt also expanded to sell steam mops, floor machines, air purifiers and other cleaning products. coway lombok air purifier reviewMr. Norton wouldn't comment on how much the Oreck family's bid might be, but those details could be revealed in court papers filed by the end of the week. The sale proceeds could be used to pay off some of the company's debts.

Oreck's prebankruptcy loan agreements enabled the company to borrow up to $20 million from lenders organized by Wells Fargo% and nearly $5.5 million from lenders led by Broadpoint Products Corp., according to court papers. Oreck executives immediately asked for the bankruptcy judge's permission to tap an $11 million bankruptcy loan from lenders who were organized by the company's controlling shareholder, Black Diamond Commercial Finance LLC, Mr. Norton said. "The [company and its affiliates] have suffered from a serious exodus of management, and without the ability to use the [bankruptcy loan] to function and retain the remaining management, the [companies'] ability to continue as a going concern would become untenable," Mr. Norton said in court papers. Oreck executives have also been fighting a proposed class-action lawsuit from customers over an advertising campaign that they allege was misleading. The lawsuit stems from accusations from the Federal Trade Commission in late 2009 that Oreck was falsely advertising that its Halo vacuum and ProShield Plus air purifier could eliminate germs and the flu, according to court papers.

Oreck officials settled that dispute with a $750,000 cash payment and without admitting wrongdoing, but several lawsuits followed from consumers who said that the company misled them "into purchasing products that did not perform as advertised," court papers said.Consumer Health Digest is a free weekly e-mail newsletter edited by Stephen Barrett, M.D., with help from William M. London, Ed.D., M.P.H. It summarizes scientific reports; and other information relevant to consumer protection and consumer decision-making. FTC curbs Oreck Corporation claims. The Federal Trade Commission has approved a settlement agreement under which Oreck Corporation must pay $750,000 and refrain from making unsubstantiated claims for any vacuum cleaner or air cleaning product. Oreck's Halo vacuum cleaner, which retailed for $599.95, contained a light chamber that generated ultraviolet light. Oreck's Proshield air cleaner, which cost as much as $399.95, uses an electrostatic charge to filter air particles.

The FTC objected to claims that the products could prevent or substantially reduce the risk of flu, colds, and other illnesses caused by bacteria, viruses, molds, and allergens. FTC settlement requires Oreck Corporation to stop making false and unproven claims that its ultraviolet vacuum and air cleaner can prevent illness. FTC news release, April 7, 2011] Illegal STD claims attacked. The FDA and FTC have announcedan effort to curb the marketing of products marketed with unproven claims of effectiveness against sexually transmitted diseases. [FDA, FTC act to remove fraudulent STD products from the market. FDA news release, May 3, 2011] So far, the agencies have jointly warned 12 companies to stop claiming that various products can prevent or cure STDs. The products—some of which are said to be dietary supplements—have been claimed to be effective against herpes, chlamydia, genital warts, and HIV. The targeted companies and products are: Immuneglory(Arenvy Laboratories, Inc)Disintegrate Formula, Echinacea/Golden Seal, Detox Formula, Burdock Extract,International Institute of Holistic Healing

Oil of Oregano P73 Physician’s Strength, Essaic Tonic Liquid Drops, Colloidal Silver 500ppm (Liquid)H-Stop Dx, H-Guard Dx, Molluscum Dx, Wart DxHerpaflör Outbreak Response Topical Liquid, Herpaflör Outbreak Response Tablets, Herpaflör Outbreak Response Combo Pack, Herpaflör Daily Formula Tablets, Herpaflör Complete PackageMedavir, ViraBalm, Vyristic Immune Support, Medavir H-Elimination KitO2xygen Force (Oxygen Force/OxyForce), DMSO Cream, DMSO Roll-on, DMSO Cream w/AloeThe Georgia Composite Medical Board has concluded that Viktor Bouquette, M.D. improperly diagnosed and treated a 56-year-old woman who died in 2002 while undergoing intravenous chelation therapy. The consent order (shown below), requires Bouquette to (a) pay a $5,000 fine plus $800 for Board costs, (b) complete 20 hours of board-approved continuing medical education in environmental medicine and 10 hours in record-keeping, and (c) refrain from providing intravenous chelation therapy to patients without fully documenting the need for such treatment on the patient's chart.

The order indicates that Board's peer-reviewer concluded that Bouquette had (a) failed to document a possible source of lead exposure, (b) failed to conduct a through physical examination, (c) relied on a provoked urine test rather than a standard blood test to measure the patient's lead level, and (d) administered intravenous EDTA chelation, which should not be done unless a patient has severe lead poisoning. Bouquette disputed the peer-reviewer's conclusions, but the Board agreed with them and Bouquette consented to be disciplined as noted. Bouquette is medical director of the Atlanta-based Progressive Medical Center, which claims to be "the most comprehensive integrative medical facility in the Southeast." In 2003, the patient's survivors sued Bouquette, several other staff members at the clinic where he worked, and Metametrix, the lab that had tested the provoked urine specimen. In 2006, Metametrix settled in an agreement with confidential terms. The suit against Bouquette and the others was dropped.