The rumors that have been circulating for weeks apparently were true. WWD broke the news that Paris-based eco-luxury brand La Bouche Rouge was placed into receivership after raising €12.5 million in funding since September 2020.

WHO: La Bouche Rouge was founded in 2017 by L’Oréal veteran Nicolas Gerlier with the aim of creating the first cosmetics brand globally to ban microplastics and plastics from everything, including product formulation, manufacturing, and selling. The brand has 22 product references across lip, eye, and face that are vegan, cruelty-free, and a perfume range consisting of five fragrances. All product comes in recyclable, refillable packaging.

IN THEIR OWN WORDS: Reached by WWD, Gerlier said, "Selling the company was on the table, with discussions underway, noting that the brand never had more desirability and traction than this year. He stressed that it was important “not [to] change the vision and commitments that I wanted to defend” from the brand’s inception and that he would only remain at the brand “if the project is serious and respects the values of the company.” 

DETAILS:

• According to the receivership filing, La Bouche Rouge filed for court protection on July 25.
• Administrative receiver firm BCM has been appointed administrator, and Paris-based firm Asteren has been appointed to represent creditors.
• Under the procedure filed with the Tribunal de Commerce de Paris, the running of the business is not impacted as the company seeks to implement payment plans to pay its debts, or the sale of its assets and activities.
• In February 2022, La Bouche Rouge raised €10 million in funding from investors Mirabeau Asset Management, the Chalhoub Group, and BPI.
• In September 2020, La Bouche Rouge secured €2.5 million ($3MM) in funding from French public investment bank Bpifrance along with a group of business angels.