Birchbox is weighing its options, including Chapter 11 bankruptcy, sources have told WWD.

In a letter to creditors sent Tuesday, Birchbox’s parent company FemTec Health, which acquired the business last 12 months, said those owed money from Birchbox could opt into shares of FemTec as a substitute.

“We consider, in the perfect interests of Birchbox and the whole FMTC family of corporations spanning the U.S. and Europe, a Chapter 11 or some equivalent structure could also be crucial,” the letter read.

Birchbox was founded in 2010 by Katia Beauchamp and Hayley Barna as the unique beauty subscription box service, but the corporate has struggled lately. The letter said that Birchbox’s revenue projections dropped from $74 million to $47 million, even following a $30 million infusion from FemTec.

The letter also gave creditors the choice to receive shares in FemTec Health in the total amount of their obligations. “We cannot negotiate separate deals with greater than 150 creditors,” the letter continued. “If we will come to an agreement regarding this latest Class A Preferred Stock, FMTC will commit to proceed to constructing Birchbox.”

FemTec didn’t reply to a request for comment.

Birchbox has reportedly struggled. In 2020, the corporate confirmed to WWD it could lay off 44 of its 94 Latest York employees. In its heyday, the corporate operated a brick-and-mortar store in SoHo, Latest York, and later developed a partnership with Walgreens to bring prestige beauty to the pharmacy giant’s shelves.

Birchbox joins a recent wave of struggling beauty businesses. Makeup brand Lilah B. announced its closure last month; Morphe parent company Forma Brands is claimed to be weighing similar restructuring options, including Chapter 11.

This past summer, Beauchamp was announced as the brand new chief executive officer of Victoria Beckham Beauty, having taken on an advisory role at Birchbox.