Beautycounter is suspending its relaunch deeper into 2024, in line with an inner e-mail considered by The Enterprise of Magnificence.
Founder Gregg Renfrew purchased the model again from non-public fairness agency Carlyle Group final month, with a view to reopen it on Might 1. Counter Manufacturers LLC, the mother or father firm of Beautycounter was wound down, and Renfrew bought the corporate with the assistance of personal buyers by way of a brand new agency, G2G. Beautycounter didn’t instantly reply to requests for remark.
In an e-mail despatched Might 6 to the corporate’s direct gross sales workers, often known as advocates, Renfrew stated they “won’t be able to launch operations” as quickly as hoped and {that a} full launch is slated for late 2024. Beautycounter’s enterprise mannequin allowed people to order, promote and distribute merchandise, in addition to recruit others to take action, and earn a small fee on these gross sales.
Renfrew went on to say that when she bought Beautycounter again, its financial state of affairs was worse than anticipated, and it lacked sufficient funds to pay down debt. She described the previous few weeks as a “mad sprint” to try to restore operations, however that the unique timeline is “too aggressive”.
Per the e-mail, the relaunched firm may have the identical mission as Beautycounter, which was based in 2013 with a “clear magnificence” ethos that eschewed many widespread cosmetics components, and likewise used a direct gross sales mannequin. It later launched wholesale by way of Ulta Magnificence and opened its personal brick and mortar shops. The brand new firm will nonetheless contain advocates, per the e-mail, however the future incomes construction could also be completely different as the corporate evaluates its choices.
Ulta Magnificence shops will proceed to promote Beautycounter till July; from then on, merchandise will solely be accessible by way of Ulta Magnificence’s web site. All non-seasonal Beautycounter brick-and-mortar shops at the moment are closed, although a seasonal retailer in Nantucket will likely be open sooner or later in the summertime.
The product assortment may change; within the e-mail, Renfrew stated whereas she appears ahead to promoting well-loved merchandise, “as with all different components of the enterprise, the staff will consider the best assortment and providing for the longer term.”
The corporate may look very completely different when it returns. Within the e-mail, Renfrew stated “all elements” of the group and gross sales construction, together with earnings and job titles will likely be assessed.
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