A week after makeup brand Morphe took to Twitter to announce that it would be closing all its US stores, parent company Forma Brands filed for Chapter 11 bankruptcy. According to a statement from Forma, their assets will be acquired by investors and they will be getting about $33 million in financing from that group. As part of the sale, the company has entered Chapter 11. “This agreement is a testament to the strength of our brands most meaningful to our consumers, including Morphe and Morphe 2,” says Simon Cowell, president of Forma, in the statement. “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.”
It is not yet clear what exactly that looks like for Morphe and other brands associated with Forma, but industry sources have told Allure that Ariana Grande is working toward finalizing an agreement to take all operations in-house for her brand, r.e.m beauty. Those sources say Forma has never had an ownership stake in r.e.m beauty, but under a licensing agreement has overseen product development, manufacturing, and marketing.
Following the closure of Morphe stores, but before this bankruptcy filing, Allure reached out to Forma to ask what this meant for the future of the other brands in its portfolio — like Bad Habit (launched in 2020 with YouTube sensation Emma Chamberlain as creative director), Jaclyn Cosmetics (from YouTuber Jaclyn Hill), and Playa Beauty (founded by former fashion stylist Shelby Wild) — and the company declined to comment. Representatives for Bad Habit, Jaclyn Cosmetics, and Playa all referred us back to Forma. R.e.m. beauty has not yet responded to a request for comment.