Forma, Morphe’s Parent Powered by Influencers, Files for Chapter 11

Forma, Morphe’s Parent Powered by Influencers, Files for Chapter 11

Forma, Morphe’s Parent Powered by Influencers, Files for Chapter 11

  • Forma will be taken over by a group of lenders, who are investing $33 million in the beleaguered company.
  • Court documents show high-profile partners like James Charles and Jaclyn Hill are now among its top unsecured creditors.
  • The bankruptcy filing comes after Morphe closed all of its US stores last week.

Forma Brands, the parent company of Morphe, has filed for bankruptcy and owes millions to several of its high-profile influential partners, including James Charles, Jeffree Star and Jaclyn Hill.

Under its Chapter 11 proceedings, Forma will be taken over by a group of lenders, including Jefferies Finance and Cerbereus Capital Management, who are investing $33 million in the beleaguered company.

In a press release, Forma said that “its product development initiatives, brand launch plans and marketing collaborations remain in place” and that customers will still be able to purchase its portfolio of brands.

According to her website, Forma’s portfolio includes Morphe, Morphe 2, Jaclyn Cosmetics, Bad Habit, Lipstick Queen and Playa Beauty – the latter of which is suing Forma for $15 million, alleging she was sidelined after her acquisition, Business of Fashion reported earlier this month.

Although he built his business by galvanizing influencer buzz, some high-profile partners now appear in court documents among a list of his top unsecured creditors, Bloomberg notes. According to court documents, Forma owes James Charles (real name James Dickinson) $2.16 million, while Jaclyn Hill owes $2 million and Jeffree Star $1.4 million.

Another high profile partner, Ariana Grande, is looking to move forward on her own. Allure, citing industry sources, said rem was finalizing plans to resume operations in-house. Forma had no stake in the brand, according to Allure, but oversaw the business through a licensing agreement.

The bankruptcy filing comes after Morphe confirmed last Thursday that it was closing all of its US stores.

At the time, she was under criticism for surprising her employees. A former store manager told Insider she noticed product discounts at her Texas store, which eventually ran out of stock to line the shelves over the holidays. On December 22, she said all employees had been notified that they were being made redundant.

In a statement to Insider, the company cited “the broader beauty landscape throughout the past year” as the reason for the closures.

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