The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The American division of the luxury cosmetics company seeks Chapter 11 protection due to its heavy store network, which includes 166 locations in the US. The company plans to close 23 stores through the restructuring, after “repeated endeavors to engage with its landlords to address unmanageable store lease terms,” according to a press release. While beauty was one of the most resilient categories during the pandemic, the sales growth happened online, putting pressure on brands and retailers that rely on costly store networks.
Like skin care and cosmetics line before them, upstart perfume brands see a path to take market share from the category’s incumbents.
Eurazeo, which invested in Pat McGrath Labs in a deal that valued the beauty brand at $1 billion in 2018, quietly sold its stake in the beauty line in 2021, BoF has learned.
The two companies, which occupy different ends of the market, report results this week. Plus, what else to watch for in the coming days.
As frothy beauty valuations come back down to earth, a group of artist-led lines are being primed for acquisition.