Recently, founder and CEO Gregg Renfrew has repurchased Beautycounter, reclaiming her brand from foreclosure after a tumultuous partnership with private equity firm The Carlyle Group. The acquisition, which took place following Carlyle’s desire to exit the investment due to a change in strategy and Beautycounter’s underperformance, marks a significant shift for the clean beauty company.
As part of the transition, the holding company Counter Brands LLC is winding down, and Renfrew is establishing a new entity that will retain the brand’s name and assets. The relaunch of Beautycounter is scheduled in just two weeks, signaling a fresh start under Renfrew’s leadership.
Regrettably, the changes have resulted in job cuts at Beautycounter, although the exact number of affected employees remains undisclosed. Additionally, the company will be evaluating its retail strategy, leading to the closure of its freestanding stores in New York and Denver. However, the seasonal store on Nantucket will continue to operate.
Renfrew’s journey in the clean beauty space began in 2013 when she pioneered Beautycounter, introducing the industry’s first “Never List” that identified and avoided over 2,800 potentially harmful ingredients. Initially launching as a direct-to-consumer business, Beautycounter expanded its reach through a network of 65,000 direct sellers and ventured into retail partnerships, most notably with Ulta Beauty, where its products were available in approximately 550 stores as of January.
The Carlyle Group acknowledged that Beautycounter faced significant market and channel challenges during their three-year partnership. Despite their efforts to support the brand through increased marketing spend, product portfolio expansion, and an enhanced omnichannel strategy, the business struggled to gain traction. Considering the substantial capital needs and the best interests of all parties involved, Carlyle determined that selling the brand back to Renfrew was the optimal course of action to ensure business continuity.
