Bona Fide Beauty Lab PS, LLC, the consultancy, incubation, and investment firm founded by beauty industry veterans Pamela Baxter and Cathy O’Brien and the company behind Beauty by PopSugar, filed for Chapter 7 bankruptcy in a New York court.

WHO: Bona Fide Beauty Lab is a consultancy, incubation, and investment firm founded by beauty industry veterans Pamela Baxter and Cathy O’Brien. The growth accelerator invests in and operates founder-led, power indie prestige beauty brands, with an eye on healthy and sustainable operations doing less than or equal to $20 million in sales and having a clear product differentiation. The company will take a significant equity position or license the IP and, through the Bona Fide Beauty Lab Management Company, provide management and operational support to fuel the growth of the brand.

Beauty by PopSugar was a licensing arrangement between Bona Fide Beauty Lab and the media property to create a beauty range fueled by insights from the largely millennial readership. The brand launched with an Ulta exclusive in March of 2018 with 19 products and 85 stock-keeping units $18 to $42. According to WWD, industry sources speculated first-year revenue to be more than $20 million in retail sales. Distribution expanded to Kohl’s, QVC, and Macy’s.

IN THEIR OWN WORDS: “Would I do anything differently? Probably not, but you have to curb your enthusiasm around your assumptions and maybe go slower,” Baxter told Beauty Independent. “We went all in, and maybe it would be better to prove out your assumptions and learn to swim before you go to the ocean.”

Despite Beauty by PopSugar’s difficulties, Baxter is bullish on the makeup segment’s long-term prospects. “It’s never going away. Do you know any 12- or 13-year-old girl that doesn’t want to experiment with makeup? It’s a form of personal expression and fun. It’s social. It’s something you can share with friends,” she says. “And it’s cyclical. I’ve been around for a long time. I grew up in the Twiggy era where it was white lipstick with a little pink tint and long false eyelashes.”

DETAILS:

• Bona Fide Beauty Lab filed for Chapter 7 bankruptcy in a New York court.
• The petition was filed on 12/31/2020 in the United States Bankruptcy Court in the Southern District of New York.
• Bona Fide Beauty Lab PS’s liabilities are estimated to be between $500,001-$1 million.
• Among its creditors are Cosmax, O.T. Delivery Systems, and Packaging & Distribution Resources.
• The company had sold its beauty products via QVC, Kohl’s, and Ulta, as well as the Beauty by PopSugar website, which has been taken down.
• Bona Fide Beauty Lab will continue to make “small investments” out of personal funds in brands it believes are compelling and will primarily focus on advising brands.
• The company has also backed Scent Invent Technologies and Sapelo Skin Care, which it sold its interest in according to Beauty Independent.