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6 Jan

Morphe Confirms U.S. Store Closures – WWD

After several TikTok users posted that Morphe stores were shuttering, the makeup brand has confirmed that its retail stores across the U.S. can be closing their doors.

“We’ve got made the difficult decision to shut all Morphe stores within the U.S. We’re without end grateful to our store teams for his or her passion, talent and dedication over time,” the brand posted on Twitter.

Morphe noted that customers can proceed to buy the brand online and at select retailers, while its stores outside the U.S. will remain open.

Some user accounts on TikTok claimed they’ve been given a day’s notice about their store’s closing. The testimonials began around late December with discussions of steep discounting on products and no shipments for inventory.

In a press release, an organization spokesman said: Following a careful evaluation of all facets of our business, we have now made the strategic decision to reinforce our deal with the corporate’s wholesale and e-commerce operations going forward. We consider this shift will position Morphe to higher compete within the broader beauty landscape and more efficiently reach our customers where and the way they shop.”

The shop closures come as its parent company Forma Brands continues to navigate a difficult backdrop.

In October, sources told WWD that Forma, whose other brands include Lipstick Queen and Jaclyn Hill’s Jaclyn Cosmetics, was considering filing for Chapter 11 bankruptcy.

On the time, a spokesperson for Forma said: “Forma Brands is engaged in constructive discussions with our financial stakeholders regarding ways to strengthen the corporate financially and enable us to strengthen our deal with the opportunities we see ahead for our brands. We’re excited in regards to the products we’ll proceed to bring to our customers.”

Morphe began as a preferred brand run by brother and sister Chris and Linda Tawil that grew largely attributable to partnerships with influencers comparable to Jeffree Star and James Charles.

In 2019, private equity firm General Atlantic acquired a 60 percent stake in a deal valuing the corporate at $2.2 billion.

When General Atlantic became involved, the business was at a high and profitable — on the time of its investment, Morphe was said to be doing about $500 million in net sales, with about $130 million in earnings before interest, taxes, depreciation and amortization.

But then several aspects occurred weighed on Morphe’s performance. First, COVID-19 struck, leading color cosmetics sales to say no industrywide. Then Morphe cut ties with Star and Charles amid allegations of inappropriate behavior. Plus, supply chain issues plagued the business.

Forma, the parent company, was formed in 2020 as a part of the business’ diversification efforts. The business also launched a subbrand, Morphe 2, and made several acquisitions, including Lipstick Queen and Playa, and incubated brands, including Bad Habit. In March, former Too Faced executive Eric Hohl joined Forma as chief executive officer, taking on from Myles McCormick, who led the business through its growth era.

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