default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Ariana Grande to Buy Beauty Brand Assets for $15 Million

Ariana Grande has reached a deal to buy assets tied to her r.e.m. beauty brand from a company that recently filed for bankruptcy, according to a court filing.
Ariana Grande at the Grammy Awards in January 2020 in Los Angeles | Source: Getty Images

Ariana Grande has reached a deal to buy assets tied to her r.e.m. beauty brand from a company that recently filed for bankruptcy, according to a court filing.

The agreement to purchase r.e.m.’s physical assets, including existing inventory, from Forma Brands is valued at roughly $15 million. The transaction needs approval from the judge overseeing the bankruptcy case in Delaware, according to court documents filed on Jan. 27. Forma, which owns the Morphe cosmetics brand, had already agreed to end a licensing agreement with r.e.m. shortly before its Chapter 11 filing, paving the way for the asset sale.

Grande and her team have been trying to regain control of the brand since October 2022, according to court records, around the time when Forma representatives first acknowledged it was considering bankruptcy protection among a number of options to shore up its fragile financial position.

The 29-year-old pop star licensed her name, image and likeness exclusively to Forma Brands in December 2020 and then debuted her space-themed beauty brand shortly after to much fanfare. Its products debuted in Ulta Beauty locations last year and were a top sales driver in the quarter through Dec. 1, according to the cosmetics chain.

Forma executives had at one point expected Grande’s brand to tally about $84 million in sales for fiscal year 2022, according to a December 2021 company presentation reviewed by Bloomberg. But according to two former employees who asked not to be identified, r.e.m. failed to meet internal projections.

Representatives for Grande and Forma Brands declined to comment.

By Kevin Simauchi

Learn more:

Morphe Parent Files for Bankruptcy, Parts Ways With Ariana Grande’s R.E.M. Beauty

Forma Brands’ assets are to be acquired by lenders and the company is losing one of its highest-profile beauty lines.


In This Article
Topics

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Beauty
Analysis and advice on the fast-evolving beauty business.

With a very famous founder and zero public financial data, Florence by Mills is either a stealth winner in Gen Z-personal care — or a placeholder for ventures that haven’t happened yet. Perhaps in the right hands it will be both.




view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024