Ariana Grande is set to buy back her r.e.m. beauty brand from Forma Brands, the parent company of Morphe Cosmetics, which has recently filed for bankruptcy.
The world-renowned pop star exclusively licensed her name, image and likeness to Forma Brands for the branding strategy and launch in 2021. Despite initially being a top sales driver after its launch in Q4, it seems that long-term success wasn’t in the cards for r.e.m. beauty under the leadership of Forma Brands.
According to court documents, Forma has routinely failed to make internal revenue estimates and officially filed for bankruptcy on January 12. Shortly before that, Morphe Cosmetics announced that it would be closing its US stores following a major drop in sales.
Grande and her team have been attempting to regain control of r.e.m. beauty ever since Forma Brands first acknowledged the possibility of bankruptcy protection. Purchasing r.e.m. beauty’s physical assets and existing inventory is currently valued at about $15 million, but the agreement remains to be approved by US Bankruptcy Court for the District of Delaware.
Celebrity-backed beauty brands gave Forma a possibility for success. Partnerships with Ariana Grande, James Charles and Jeffree Star were behind a 21% increase in sales in the previous year, as stated by CEO Dave Kimbell. However, this was not enough to keep Forma Brands afloat.
The future of r.e.m. beauty remains unknown but audiences can expect an exciting return to the spotlight soon.