Direct Cellars, a multi-level marketing company specializing in wine sales, suspended all business operations on October 12th. The company cited "adverse conditions and a lack of immediate financing" as the reason for its sudden closure, immediately terminating all distributor agreements.
The collapse triggered an aggressive, corporate-backed scramble for Direct Cellars' extensive salesforce. Within three hours of the initial closure announcement, Direct Cellars' own leadership began directing its former distributors to a competing wine MLM, Travelling Vineyard.
An email from Direct Cellars President Kevin Raulston included a pitch from Travelling Vineyard CEO Rick Libby. The message offered a "special offer" for new enrollees, priced at $79. Libby later publicly thanked Raulston for "hosting" him in a video pitch aimed at the displaced distributors. A follow-up email on October 14th reiterated the offer, inviting former Direct Cellars members to a "no pressure, no-obligation call" with Travelling Vineyard.
This level of corporate-facilitated migration to a competitor is an unusual step following a company shutdown. Typically, the fight for a defunct MLM's sales network unfolds through individual social media campaigns. The Direct Cellars scenario raises questions about the nature of the relationship and any potential agreements between the two companies.
Another company, Wine Ambassador, also moved quickly to attract the former Direct Cellars salesforce. This effort included appointing Rory Ricord as its new CEO this month. Ricord was a prominent 3-Star distributor with Direct Cellars and is known for his "RRR247" marketing tools.
Ricord confirmed his new role on his LinkedIn profile, stating he is "taking the helm of an incredible Wine of the Month Club program that we are growing Globally." Wine Ambassador, which launched in 2016, has not maintained a strong public presence; its official Facebook page has not been updated since August 2018.
The sudden cessation of Direct Cellars' operations leaves its former distributors in a precarious position. Many face immediate loss of income, unfulfilled orders for their customers, and unrecouped investments in products or marketing materials. The downlines they built over months or years effectively dissolve overnight.
Some high-ranking distributors had already exited the company prior to the official announcement. Sherry Leasure, who publicly claimed to have built a 10,000-person Direct Cellars downline, transitioned to the iGalen MLM approximately five months before the shutdown. Her departure suggests internal instability well in advance of the public disclosure.
Direct Cellars stated that all orders placed before October 12th would ship "in the near future," with tracking details to be provided. Former distributors or customers with unfulfilled orders or financial concerns may contact their state's Attorney General's office for guidance.