Beautycounter is postponing its relaunch deeper into 2024, according to an internal email viewed by The Business of Beauty.
Founder Gregg Renfrew bought the brand back from private equity firm Carlyle Group last month, with a view to reopen it on May 1. Counter Brands LLC, the parent company of Beautycounter was wound down, and Renfrew purchased the company with the help of private investors via a new firm, G2G. Beautycounter did not immediately respond to requests for comment.
In an email sent May 6 to the company’s direct sales staff, known as advocates, Renfrew said they “will not be able to launch operations” as soon as hoped and that a full launch is slated for late 2024. Beautycounter’s business model allowed individuals to order, sell and distribute products, as well as recruit others to do so, and earn a small commission on those sales.
Renfrew went on to say that when she purchased Beautycounter back, its economic situation was worse than expected, and it lacked enough funds to pay down debt. She described the last few weeks as a “mad dash” to try and restore operations, but that the original timeline is “too aggressive”.
Per the email, the relaunched company will have the same mission as Beautycounter, which was founded in 2013 with a “clean beauty” ethos that eschewed many common cosmetics ingredients, and also used a direct sales model. It later launched wholesale via Ulta Beauty and opened its own brick and mortar stores. The new company will still involve advocates, per the email, but the future earning structure may be different as the company evaluates its options.
Ulta Beauty stores will continue to sell Beautycounter until July; from then on, products will only be available via Ulta Beauty’s website. All non-seasonal Beautycounter brick-and-mortar stores are now closed, though a seasonal store in Nantucket will be open at some point in the summer.
The product assortment may also change; in the email, Renfrew said while she looks forward to selling well-loved products, “as with all other elements of the business, the team will evaluate the right assortment and offering for the future.”
The company could look very different when it returns. In the email, Renfrew said “all aspects” of the community and sales structure, including earnings and job titles will be assessed.
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