04.12.23
Forma Brands LLC, which filed for Chapter 11 Bankruptcy in January, has completed the sale of all of its assets to an investor group for $690 million and thereby emerged from the restructuring process with a new CEO.
In addition to Jefferies Finance LLC, funds managed by Cerberus Capital Management, L.P., and FB Intermediate Holdings, LLC, the Company's new owners now also include &vest, a consumer brand investment and operational platform with expertise in the beauty industry.
Thomas Brady, President of Jefferies Finance LLC, said, "On behalf of the entire Investor Group, we are pleased to complete the acquisition of Forma Brands, enabling the Company to move forward in a position of financial strength. With a new capital structure that includes additional liquidity and less debt, Forma Brands is poised to return to growth and increase profitability while it continues providing consumers around the globe with thoughtfully selected beauty products."
Simon Cowell, President of Forma Brands, commented, "This marks the start of an exciting new chapter for Forma Brands. With new capital and the support of our Investor Group, we are moving forward with the resources necessary to support the execution of our new long-term growth strategy focused largely on our global wholesale and e-commerce operations. We are excited about the opportunities ahead for Forma Brands and our multi-category portfolio of innovative beauty brands."
Moskowitz brings more than 20 years of leadership experience in the retail industry, previously serving as the Chief Executive Officer of Outdoor Voices and managing InterLuxe Holdings, where he drove operational improvements and led investments in world-class retail brands including Jason Wu, A.L.C. and Mackage.
Moskowitz remarked, "I am pleased to join Forma Brands as CEO. All of us at &vest are excited about this new partnership, and we look forward to helping to return Forma Brands to growth. The Company benefits from an innovative brand and marketing strategy, a strong portfolio – including Morphe, Morphe 2 and Born Dreamer – and an exceptional network of global creators, influencers, affiliate partners and retail partners. We see compelling opportunities to drive growth in the business, including new products, geographies and channel and distribution partners – all of which we are going to pursue."
Moving forward, Forma believes it can unlock significant growth by leveraging not only its operational expertise, but also that of the rest of the Investor Group.
In addition to Jefferies Finance LLC, funds managed by Cerberus Capital Management, L.P., and FB Intermediate Holdings, LLC, the Company's new owners now also include &vest, a consumer brand investment and operational platform with expertise in the beauty industry.
Emerging from Bankruptcy, Ready to Return to Growth
Forma Brands is the parent company of Morphe, Lipstick Queen, Jaclyn Hill’s Jaclyn Cosmetics and more. Sources attribute the company’s bankruptcy to the pandemic, which caused a two-year slide in color cosmetics sales, supply chain issues, as well as controversy surrounding celebrity brands from Jeffree Star and James Charles.Thomas Brady, President of Jefferies Finance LLC, said, "On behalf of the entire Investor Group, we are pleased to complete the acquisition of Forma Brands, enabling the Company to move forward in a position of financial strength. With a new capital structure that includes additional liquidity and less debt, Forma Brands is poised to return to growth and increase profitability while it continues providing consumers around the globe with thoughtfully selected beauty products."
Simon Cowell, President of Forma Brands, commented, "This marks the start of an exciting new chapter for Forma Brands. With new capital and the support of our Investor Group, we are moving forward with the resources necessary to support the execution of our new long-term growth strategy focused largely on our global wholesale and e-commerce operations. We are excited about the opportunities ahead for Forma Brands and our multi-category portfolio of innovative beauty brands."
Cliff Moskowitz Named CEO
In connection with the completion of the transaction, Cliff Moskowitz, an operating partner at &vest, has joined Forma Brands as Chief Executive Officer.Moskowitz brings more than 20 years of leadership experience in the retail industry, previously serving as the Chief Executive Officer of Outdoor Voices and managing InterLuxe Holdings, where he drove operational improvements and led investments in world-class retail brands including Jason Wu, A.L.C. and Mackage.
Moskowitz remarked, "I am pleased to join Forma Brands as CEO. All of us at &vest are excited about this new partnership, and we look forward to helping to return Forma Brands to growth. The Company benefits from an innovative brand and marketing strategy, a strong portfolio – including Morphe, Morphe 2 and Born Dreamer – and an exceptional network of global creators, influencers, affiliate partners and retail partners. We see compelling opportunities to drive growth in the business, including new products, geographies and channel and distribution partners – all of which we are going to pursue."
Moving forward, Forma believes it can unlock significant growth by leveraging not only its operational expertise, but also that of the rest of the Investor Group.