10.14.22
Forma Brands, the parent company of Morphe, Lipstick Queen and Jaclyn Hill’s Jaclyn Cosmetics, may file for Chapter 11 bankruptcy, according to Reorg Research. Sources blame the pandemic, which caused a two-year slide in color cosmetics sales, supply chain issues, as well as controversy surrounding celebrity brands from Jeffree Star and James Charles.
With sales of $350 million last year, Forma Brands ranked No. 43 in Happi's The Top 50 and No. 97 in The Happi 100.
Majority owner, private equity firm General Atlantic, declined to comment. For its part, a spokesperson for Forma said: “Forma Brands is engaged in constructive discussions with our financial stakeholders regarding ways to strengthen the company financially and enable us to reinforce our focus on the opportunities we see ahead for our brands. We are excited about the products we will continue to bring to our customers.”
In 2019, General Atlantic purchased a 60% stake in Morphe. The deal valued the company at $2.2 billion. At the time of its investment, Morphe was said to be doing about $500 million in net sales, with about $130 million in earnings before interest, taxes, depreciation and amortization.
With sales of $350 million last year, Forma Brands ranked No. 43 in Happi's The Top 50 and No. 97 in The Happi 100.
Majority owner, private equity firm General Atlantic, declined to comment. For its part, a spokesperson for Forma said: “Forma Brands is engaged in constructive discussions with our financial stakeholders regarding ways to strengthen the company financially and enable us to reinforce our focus on the opportunities we see ahead for our brands. We are excited about the products we will continue to bring to our customers.”
In 2019, General Atlantic purchased a 60% stake in Morphe. The deal valued the company at $2.2 billion. At the time of its investment, Morphe was said to be doing about $500 million in net sales, with about $130 million in earnings before interest, taxes, depreciation and amortization.