- About three months after filing for Chapter 11, beauty company Forma Brands exited bankruptcy through a completed sale to its investor group, according to a Tuesday press release.
- The company — which owns makeup brand Morphe — also appointed Cliff Moskowitz as its new chief executive officer. Moskowitz previously acted as interim CEO at athletics apparel brand Outdoor Voices and is an operating partner at &vest.
- Forma Brands’ new owners include Jefferies Finance, funds managed by Cerberus Capital Management, FB Intermediate Holdings and &vest, per the release.
Emerging out of bankruptcy, Forma Brands is shifting its long-term growth plans.
"This marks the start of an exciting new chapter for Forma Brands. With new capital and the support of our Investor Group, we are moving forward with the resources necessary to support the execution of our new long-term growth strategy focused largely on our global wholesale and e-commerce operations,” Simon Cowell, president of Forma Brands, said in a statement. “We are excited about the opportunities ahead for Forma Brands and our multi-category portfolio of innovative beauty brands."
The Morphe parent company filed for bankruptcy in January just a week after it announced the closure of all its U.S.-based Morphe stores.
Court documents from the filing showed that liquidity and operational issues arose from “the COVID-19 pandemic, widespread changes to consumers’ beauty habits” and the company’s need to terminate deals with certain influencers. Forma Brands listed about $868 million of funded principal debt and interest obligations.
In addition to operating the Morphe brand, the company entered into a licensing agreement with celebrity Ariana Grande’s brand R.e.m Beauty in December 2020. The agreement allowed Forma Brands to develop, manufacture, market, sell and distribute the branded products. However, Grande’s company claimed in October that the license agreement was validly terminated, and in February the artist agreed to buy back R.e.m Beauty assets for $15 million.