Forma Brands emerges from bankruptcy, appoints new CEO

Beauty label conglomerate Forma Brands has announced the completion of its sale for almost all of its assets to an investor group, as it also reveals that it has emerged from its restructuring process.

The company, which owns the likes of Morphe, Playa Beauty and Jaclyn Cosmetics, filed for bankruptcy in early January 2023, as it looked to stabilise its business and reposition itself for long-term growth.

Forma ultimately agreed to an acquisition by a group of secured lenders, including Jefferies Finance and &Vest, a consumer brand investment and operational platform.

The sale has allowed the company to move forward “in a position of financial strength”, the president of Jefferies, Thomas Brady, said in a release.

He continued: “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 provisioning consumers around the globe with thoughtfully selected beauty products.”

Forma will now go ahead with its new long-term growth strategy, which its president, Simon Cowell, said would be focused largely on its global wholesale and e-commerce operations.

In connection with the completion of the transaction, operating partner at &Vest, Cliff Moskowitz, has joined Forma as chief executive officer.

Moskowitz brings over 20 years of leadership experience in the retail industry, having previously served as CEO of Outdoor Voices and managing InterLuxe Holdings.

He also has experience in investing in a series of retail brands, such as Jason Wu and Mackage.