Last week, Retail Beauty reported that Morphe cosmetics was closing all of its US standalone stores.
In another corporate body blow, Forma Brands, the parent company of Morphe, Morphe 2, Lipstick Queen and Playa Beauty, has filed for voluntary Chapter 11 bankruptcy in the US.
The company has obtained about US$33 million in debt-in-position funding from core investors, including Cerberus Capital Management, to continue to trade in the interim. Forma Brands has also ceased to be a vendor of Ariana Grande’s r.e.m Beauty.
Over the last year, Forma Brands has been implementing initiatives to stabilise our business and reposition our organisation for long-term growth, said Simon Cowell, president of Forma Brands.
“This agreement is 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.”
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