Los Angeles-based BH Cosmetics, majority-owned by MidOcean Partners, has filed for bankruptcy after betting on celebrity collaborations with Doja Cat and Iggy Azalea to propel sales.
WHO: LA-based BH Cosmetics launched in 2009, and is a leading direct-to-consumer color cosmetics brand focused on the Millennial / Generation Z consumer. BH offers a full range of color cosmetics, brushes, and accessories at value pricing. The company had a worldwide social media following across multiple platforms and utilizes a deep influencer network to drive brand awareness and customer acquisition. Given the company's heritage as a digitally native e-commerce color cosmetics brand, BH developed an advanced e-commerce platform with proven capabilities in customer acquisition, consumer engagement, and customer loyalty. BH Cosmetics recently created makeup lines with Doja Cat and Iggy Azalea. BH sold its products online, as well as through Ulta Beauty and other retailers.
WHY: "The debtors' declining revenues are insufficient to support continued operations," BH wrote in court documents. BH said it faced "increased competition" in the beauty category, and that attempts to maintain market share eroded profitability. "The debtors have also struggled to obtain profitability after pursuing an ultimately unsuccessful launch of various product lines," BH's chief restructuring officer, Spencer Ware from Riveron Management, wrote in a declaration.
2 Article(s) Remaining