Morphe Cosmetics was once seen as exclusive and on-trend, highly sought after, and their products were often sold out. The brand is officially going under after the parent company announced owing $868 million in debt and interest.
Morphe’s only option was to hand over all of its operations to a group of lenders who will oversee the company stays running so thousands of people aren’t out of work.
Morphe Cosmetics, owned by FORMA Brands, made its way to the top by partnering with celebrities such as Jeffree Starr, Jaclyn Hill, and Charlie D’Amelio, to name a few of the big ones.
Social media advertising influenced the sales of cheaply made overpriced products which created revenue for the company at an exponential rate… until that was no longer working.
In a press release from FORMA Brands earlier this month, 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. 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 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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