BH Cosmetics has filed for Chapter 11 bankruptcy protection in Wilmington, Delaware, and is planning to sell its intellectual property for US$4.3 million, according to WWD.com.
BH Cosmetics has relied on celebrity partnerships with the likes of Doja Cat and Iggy Azalea, however, it stated in the court papers that it has faced ‘increased competition’ in the beauty category and that attempts to maintain market share eroded profitability.
BH’s Chief Restructuring Officer, Spencer Ware from Riveron Management, stated that the company had struggled to obtain profitability after “pursuing an ultimately unsuccessful launch of various product lines.”
The company brought in new management in 2019 to mark a transitionary year, however, the pandemic hit it hard, with sales dropping from US$55.8 million in 2019 to US$33.6 million in 2020.
Taking to court documents, BH said, “The debtors’ declining revenues are insufficient to support continued operations.”
