In another setback for the influencer-fronted beauty industry, Jaclyn Hill announced on January 1st that her eponymous cosmetics brand will be shutting down “for the foreseeable future.” The closure of her line is attributed to the post-bankruptcy restructuring efforts of its parent company, Forma Brands.
Forma Brands, the parent company of Morphe, launched Jaclyn Hill’s cosmetics line in 2019, during the peak of YouTube’s first wave of creators. At that time, the company made a strategic move by betting on high-profile influencers like Hill, as well as controversial figures James Charles and Jeffree Charles.
However, Forma Brands faced significant challenges as sales failed to meet expectations, leading to mounting debt. In January 2023, the company filed for Chapter 11 bankruptcy. Adding to their troubles, Forma Brands also lost the lucrative license of R.e.m. Beauty, a brand launched by Ariana Grande. Grande repurchased her brand for $15 million that same month.
In March 2023, Forma Brands underwent a significant change when it reached an agreement to be acquired by lenders Jefferies Finance and Cerberus Capital Management. The deal involved $690 million in debt relief. Following the acquisition, Forma Brands’ president, Simon Cowell, emphasized that the company’s new focus would be “product-first” rather than “influencer-first.”
The closure of Jaclyn Hill’s cosmetics line reflects the evolving landscape of the beauty industry. Companies are shifting their priorities away from relying solely on influencer endorsements and are instead prioritizing the quality and appeal of their products. While Jaclyn Hill’s brand may be temporarily closing its doors, it serves as a reminder of the challenges faced by influencer-led ventures in an industry that demands constant innovation and adaptability.
