Forma Brands LLC, the parent company of beauty retailer Morphe LLC, filed for bankruptcy in Delawre on Thursday as it reached a deal with lenders including Jefferies and Cerberus Capital Management.
As part of the agreement, secured creditors will take over Forma’s wholesale operations, online platforms and international Morphe retail stores while providing $33 million of new money, subject to court approval, according to a company statement.
The court filing caps a tumultuous two-and-a-half years for the San Francisco-based company that failed to see revenues grow in spite of marketing deals with Youtubers and influencers.
The retailer recently announced that it would shutter all of Morphe’s retail locations in the US. It had to cut ties with two of its big three influencers and wrestle with a litany of litigation for missed rent and vendor payments.
Forma has between $500 million and $1 billion in liabilities, according to court documents.
The case is 1:23-bk-10026, US Bankruptcy Court for Delaware.
By Kevin Simauchi
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