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Bankrupt Forma Brands Acquired by Lenders for $690 Million

Published March 31, 2023
Published March 31, 2023

The parent company of Morphe entered Chapter 11 bankruptcy in January. After no better bids emerged, the courts approved a sale to Forma Brand's lenders Jefferies Finance and Cerberus Capital Management in exchange for $690 million in debt relief.

WHO: Forma Brands (formerly known as Morphe Holdings) is an incubator, accelerator, and curator of next-generation beauty brands and products. Its multi-branded and multi-category portfolio includes Morphe, Morphe 2, Jaclyn Cosmetics, Bad Habit, Lipstick Queen, and Playa Beauty.

WHY: Forma Brands, once valued at $2 million, closed all of Morphe’s US stores, roughly 20 in total, in early January and filed for Chapter 11 bankruptcy about a week later. 


  • Jefferies Finance and Cerberus Capital Management acquired Forma Brands in exchange for $690 million in debt relief. 
  •  A recently formed LLC, FB Acquisition, will acquire Forma Brands and its related entities, which include companies in Canada, Europe, and Asia.
  • In February, Ariana Grande bought back the assets of her r.e.m. makeup company that she licensed to Forma Brands in 2020 for $15 million.
  • Forma Brands generates about 80% of its sales from Morphe.

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