Forma Brands, the parent company of popular cosmetics brand Morphe, has recently filed for Chapter 11 bankruptcy protection in the United States. The company will be taken over by its lenders through an asset purchase agreement. This agreement includes Jefferies Finance and Cerberus Capital Management, among others. The lenders will acquire most of Forma Brands’ assets, with the goal of improving the company’s financial position and supporting its long-term growth strategy, particularly in global wholesale and e-commerce operations.

However, it has been reported that Forma Brands plans to end its licensing agreement with Ariana Grande’s r.e.m. brand. According to Bloomberg, the decision to end the agreement was due to disappointing sales. Despite this, Forma Brands reassures its commitment to collaborate with global creators and partners, as well as continue with product development, brand launches, and marketing collaborations.

Customers can still purchase Forma Brands’ portfolio of brands online, through specialty retailers, and international Morphe retail stores. The company recently announced the closure of all its US stores but remains confident in the strength of its brands, especially Morphe and Morphe 2. Simon Cowell, President of Forma Brands, believes that the asset purchase agreement will provide additional financial resources for investments in the company’s portfolio, product launches, and marketing strategies.

To support its operation during the sale process, Forma Brands has secured around $33 million in debtor-in-possession financing from an investor group. Pending court approval, this financing will ensure the business can continue its operations. Additionally, Stephen Marotta has been appointed as the Chief Restructuring Officer to oversee the restructuring process. Marotta brings extensive experience in financial restructuring to the role.

Despite the bankruptcy filing, Forma Brands remains optimistic about the future of its brands globally. With the support of its lenders and a stronger financial position, the company aims to inspire creativity, promote inclusivity, and connect with beauty consumers worldwide.

Useful links:
1. Forma Brands Official Website
2. Morphe Online Store