On Instagram, influencer Jaclyn Hill announced on Jan 1. that her eponymous beauty brand will be closed “for the foreseeable future.”
The line – fronted by Hill but owned by Forma Brands, the parent company of Morphe – launched in 2019 when YouTube’s first wave of creators was at its peak. Forma Brands specifically bet on high-profile influencers such as Hill and the controversial stars James Charles and Jeffree Charles. In Jan. 2023, Forma Brands entered Chapter 11 bankruptcy, after sales failed to meet expectations and debt mounted. It subsequently lost the lucrative licence of R.e.m. Beauty, launched by Ariana Grande, when she bought back her brand for $15 million in the same month.
In March 2023, Forma Brands reached an agreement to be acquired by lenders Jefferies Finance and Cerberus Capital Management exchange for $690 million in debt relief. In an interview following the acquisition, Forma Brands president Simon Cowell said the company’s new focus would be “product-first, not “influencer-first”.
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Morphe Parent Files for Bankruptcy, Parts Ways With Ariana Grande’s R.E.M. Beauty
Forma Brands’ assets are to be acquired by lenders and the company is losing one of its highest-profile beauty lines.
