MacArthur Beauty has acquired Uoma Beauty’s intellectual property amid indications that the inclusive brand has struggled to capitalize on early success and become a distressed asset. Founder Sharon Chuter has threatened to challenge the sale.
WHO: Founded in 2019 by Sharon Chuter, Uoma Beauty has been at the forefront of the fight for inclusivity and diversity in the industry, from its 51-shade foundation range to the unapologetic #PullUpOrShutUp online movement, which held up a mirror to beauty brands on the lack of representation in their campaigns as well as their workforce. The brand is available in retailers like Ulta Beauty, JCPenney, Harvey Nichols, Nordstrom, Shopbop, Shoppers Drug Mart, and QVC, but the brand has been marked down in retailers.
In 2021, Uoma launched an affordable secondary line called Uoma by Sharon C. with Walmart and then rolled out to CVS. The brand hasn’t posted on Instagram since May and has been on clearance at Walmart.
MacArthur Beauty is an offshoot of The MacArthur Companies, which historically has specialized in the cannabis, real estate, and pharmaceuticals sectors. Uoma Beauty is the new fund’s first beauty acquisition.
WHY: In late November, the brand was served a notice from the UK government, warning that it could be struck off the register and dissolved within two months because of overdue accounts. According to a December 8 filing, the compulsory strike-off action has been suspended.
Uoma Beauty’s founder, Sharon Chuter, announced in May that she stepped down as CEO and left the brand’s board of directors. “I have relinquished all operational involvement in Uoma Beauty,” Chuter wrote in a May post on her personal Instagram page.
Uoma Beauty had gone all but dormant in recent months. Retailers put the brand on clearance, customers took to social media to complain that orders were not being fulfilled, and emails sent to the brand’s press account bounced back. Suppliers also began filing suit for breach of contract in an attempt to recover money owed.
IN THEIR OWN WORDS: “We saw an opportunity to save this company and turn it completely around,” said Todd Boren, Managing Partner at The MacArthur Companies. He said Uoma Beauty’s sales reached $15 million in 2022.
The first order of business is to “stabilize inventory and make sure that we could re-fulfill these orders for these large customers and regain ... retailer trust,” said Tony Bash, MacArthur’s General Partner.
“No one will be left high and dry,” he said. Staffing will be another priority, as Boren said the previous team had largely already departed; a new chief executive and chief operating officer will be appointed shortly.
In an email sent to The Business of Beauty, Chuter said she intended to challenge the sale, which she claimed she learned of only after it had been completed. She described the situation as “a cautionary tale of the realities of what founders have to suffer quietly with investors and why we are seeing more and more exodus of founders and consequently a decline in innovation.”
DETAILS:
