The US cosmetics company, which owns Morphe, has been acquired by lenders and additional investors just three months after filing for bankruptcy
"Forma Brands is poised to return to growth," said its new Investor Group
The sale of the company’s assets has been completed, with its new owners now including venture capital firm &vest.
This is in addition to Jefferies Finance LLC, Cerberus Capital Management LP and FB Intermediate Holdings LLC – known collectively as the Investor Group.
Forma Brands – which owns Morphe 2, Jaclyn Cosmetics and Bad Habit – filed for Chapter 11 bankruptcy back in January.
"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,” said Thomas Brady, President of Jefferies Finance LLC.
“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."
Cliff Moskowitz, Operating Partner at &vest, has been named Forma Brands new CEO, effective immediately.
Moskowitz brings more than 20 years leadership experience in retail to the role.
Previous positions include CEO of fashion company Outdoor Voices and President of InterLuxe Holdings, where Moskowitz led investments in apparel brands such as Jason Wu and A.L.C.
"All of us at &vest are excited about this new partnership, and we look forward to helping to return Forma Brands to growth,” said Moskowitz.
“The company benefits from an innovative brand and marketing strategy, a strong portfolio, and an exceptional network of global creators, influencers, and affiliate 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."
Simon Cowell, President of Forma Brands, said the acquisition marks an “exciting new chapter” for the company.
“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,” he said.
“We are excited about the opportunities ahead for Forma Brands and our multi-category portfolio of innovative beauty brands."
Ariana Grande’s R.E.M. beauty, however, has not been part of the deal after the singer bought her brand’s assets from Forma for US$15m.
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