Morphe Parent Company Forma Brands Files For Bankruptcy
The news follows a string of controversies with influencers and store closures.
Days after makeup brand Morphe announced on Twitter that it would be closing all U.S. stores, its parent company, Forma Brands, has filed for bankruptcy.
Forma Brands is the holding company behind cosmetic labels such as Morphe, Jaclyn Cosmetics, Playa, Lipstick Queen and Ariana Grande's R.E.M. Beauty. In an official statement, Forma confirmed that its assets would be acquired by a group of lenders, including Jefferies Finance LLC, Cerberus Capital Management LP and Intermediate Holdings LLC.
Simon Cowell, President of Forma Brands, said, “Over the last year, FORMA Brands has been implementing initiatives to stabilize our business and reposition our organization for long-term growth.”
“This agreement is a testament to the strength of our brands most meaningful to our consumers, including Morphe and Morphe 2. We will have additional financial resources available to invest in our multi-category portfolio, product launches and innovative brand and marketing strategy as we advance our vision to inspire creativity, promote inclusivity and connect with consumers around the world through beauty.”
“We appreciate the continued support of our financial partners and believe this is the best path forward for FORMA Brands as we position the business for the long term.”
Forma was given roughly $33 million from creditors to support business operations through the sale process. Forma is among the many brands facing significant challenges post-pandemic. Revenue began to fall short of ambitious targets in 2021. Around the same time, the brand became plagued with controversies surrounding collaborations with beauty influencers like Jeffree Star and James Charles.
Forma isn't the only influencer-driven beauty company experiencing uncertainty at the moment. According to reports, Selfless by Hyram, helmed by Hyram Yarbro, and Item Beauty, fronted by Addison Rae, will soon be exiting their Sephora retail partnerships.