Ariana Grande is ending a licensing deal for r.e.m. with Forma Brands, the parent company of Morphe Cosmetics, which recently entered bankruptcy, and acquiring existing inventory.
According to a court filing, Grande has reached a deal to buy the assets tied to her r.e.m. beauty brand from Forma Brands, which recently filed bankruptcy.
WHO: Ariana Grande licensed her name, image, and likeness exclusively to Forma Brands in December 2020. The r.e.m. beauty brand launched DTC in November 2021 and debuted at Ulta and Selfridges in 2022.
WHY: The pop star and her team have been trying to regain control of the brand since October 2022, when Forma Brands first acknowledged it was considering bankruptcy among various options to strengthen its financial position, but stressed that a definitive direction has yet to be decided.
DETAILS:
- Ariana Grande will purchase r.e.m. beauty's physical assets which, including existing inventory and unfilled purchase orders, are valued at roughly $15 million, from Forma Brands.
- The transaction requires approval from the judge overseeing the case in the U.S. Bankruptcy Court for the District of Delaware.
- Forma Brands had agreed to end a licensing agreement with r.e.m. shortly before its Chapter 11 filing, preparing the way for the asset sale.
- The brand is set to launch in Europe on February 13, with Sephora in 81 stores and 13 online e-shops.
- Forma Brands filed for bankruptcy last month, about a week after it announced the closure of all its Morphe US brick-and-mortar stores.
- It entered into a proposed acquisition deal in which lenders, including Jefferies Finance, will pay $33 million to take over the business.
- Forma has about $868 million in funded principal debt and interest obligations.
