Why Did Beautycounter Close?

Why Did Beautycounter Close? Thousands of Advocates Left Out in the Cold

"We are currently ​working ​to build a new company but don’t worry, we’ll be back later this year with the safer, high-performing products you know and love, as well as some other surprises."

May 7 2024, Published 1:34 p.m. ET

Seemingly out of nowhere, standard attractiveness brand Beautycounter is not.

The company, which used to be based in 2013 by Gregg Renfrew, simply closed with a curt announcement to reps selling the logo.

What took place?

Here's what we find out about why Beautycounter closed, and what Gregg sees taking place someday now that the well-known makeup and skincare line is kaput.

So, why did Beautycounter close?

Instead of being able to shop makeup and skincare items, a statement on the corporate's website now reads, "Something new is on the way. We are currently ​working ​to build a new company but don’t worry, we’ll be back later this year with the safer, high-performing products you know and love, as well as some other surprises."

According to the observation, shoppers can shop Beautycounter merchandise at Ulta in retailer through July, and on-line beyond that.

The remark then teases a new launch later this year, and invites shoppers to join updates.

"Thank you for your support and for being a part of the better beauty movement," the statement concludes.

So what happened?

According to The Carlyle Group, which previously owned the company ahead of it used to be bought back to the founder, the corporate "experienced significant market and channel headwinds" over the last three years.

"We undertook every effort to support the brand, including by increasing marketing spend, driving innovation to broaden the product portfolio, and enhancing the omnichannel strategy — and investing additional capital into the business to support these initiatives along the way," a spokesperson told New Beauty.

But, according to The Carlyle Group, "The business continued to lose ground."

With Gregg again on the helm, a shocking email went out to reps on April 17, 2024, and an abrupt commentary used to be shared to Beautycounter's social media channels.

Beautycounter simply lower ties with its reps.

Reps who promote Beautycounter gained an e mail pronouncing their settlement with Beautycounter used to be terminated, efficient in an instant.

“In connection with a sale, the Company is shutting down its operations and intends to wind-down and dissolve within the near-term. You will obtain fee of all gathered and unpaid commissions in the course of the Termination Date, and you shall in a different way haven't any additional rights to any bonuses, commissions, or different compensation [following] the Termination Date," the email read.

Online, customers found out that the brand was going out of business. The statement said in part that the company "used to be pressured to close its doorways."

The goal of launching a new company in late 2024 was also reiterated.

Gregg shared a personal message with customers, saying, "Thank you from the ground of my center. While things had been tricky lately, I'm hopeful and assured that, together, we can construct something new and impactful. Our paintings is most effective starting."

Not surprisingly, reps and customers struggled with the news that Beautycounter is closing. One person begged on X, "Are there any reporters writing in regards to the Beautycounter business stuff and the way selling it used to be a significant source of source of revenue for girls and now they'll be out of an source of revenue movement? Because I wish to read that piece."

According to a CNBC story printed in Jan. 2024, as many as 65,000 other folks advocated for the corporate by means of plugging the goods on social media and receiving a commission for gross sales.

ncG1vNJzZmivp6x7pbXSramam6Ses7p6wqikaKhfrLW6ecOim2aalZbCtcXCqKynrJWneqS4zqyc