Forma Brands, the parent company of Morphe, filed for bankruptcy in Delaware with plans to be taken over by lenders, including Jefferies Finance and Cerberus Capital Management. The Chapter 11 filing will allow the business to keep operating while it seeks court approval of a restructuring plan.
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: The proposed transaction is expected to significantly strengthen Forma Brands' financial position and provide additional support for the execution of its long-term growth strategy, which will focus largely on the company's global wholesale and e-commerce operations.
IN THEIR OWN WORDS: Simon Cowell, President of Forma Brands, said, "Over the last year, Forma Brands has been implementing initiatives to stabilize our business and reposition our organization for long-term growth. This agreement is a testament to the strength of our brands most meaningful to our consumers, including Morphe and Morphe 2. We will have additional financial resources available to invest in our multi-category portfolio, product launches and innovative brand and marketing strategy as we advance our vision to inspire creativity, promote inclusivity and connect with consumers around the world through beauty. We appreciate the continued support of our financial partners and believe this is the best path forward for Forma Brands as we position the business for the long term."
Mr. Cowell continued, "We are excited to reinforce our focus on the opportunities we see ahead for our brands and continue bringing our thoughtfully selected beauty products to consumers through our individual online brand platforms, retail partners and Morphe stores outside the U.S. We thank our stakeholders for their continued support, including our global creators, influencers, affiliate and retail partners and our vendors and suppliers, all of whom play a key role in helping us curate the next generation of beauty brands and products. I also extend my deepest appreciation to our team members for their commitment to Forma Brands and for always going the extra mile to deliver thoughtfully selected products to our consumers."
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