Beauty Visions has acquired Mallygirl after the US make-up brand filed for involuntary bankruptcy.
The deal was approved by the Bankruptcy Court in the District of Maryland on 5 June and completed yesterday. Mallygirl started looking for a buyer back in August last year, according to official court papers.
Beauty Visions’ takeover came as a result of an auction process against another bidder. Over the course of 18 bids, the price grew 43% closing at $10m.
Heritage Equity Partners (HEP) acted as broker for Mallygirl and conducted the marketing process to identify potential buyers. HEP worked with Chief Restructuring Officer Michael Lang who provided crisis management.
Lang said: “The acquisition by Beauty Visions will allow the company to emerge from bankruptcy properly capitalised and well positioned to continue serving customers and working with our vendors. The support from both groups has been phenomenal and we are excited for this new chapter.”
Annual sales of Mallygirl reached over $30m in 2014. Mallygirl was founded by Mally Ronal in 2005, who has built up a strong social media presence (click here for more on this story). Roncal also appears on QVC, which sells Mallygirl products.
