Makeup Revolution’s Owner Buys BH Cosmetics Out of Bankruptcy
U.K. beauty business Revolution Beauty is buying BH Cosmetics out of bankruptcy for $3.9 million.
The move is part of Revolution’s broader goal to expand. The company, which went public in London during 2021, has said it intends to move from a primarily makeup business into all beauty categories. The BH deal is meant to give the company more U.S.-based business.
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BH filed for Chapter 11 bankruptcy protection in January after seeing sales plummet during the COVID-19 pandemic. The business is known for makeup, which didn’t fare well as people stayed home and wore masks. Sales fell to $33.6 million in 2020, from $55.8 million in 2019.
The company said in court papers that it faced “increased competition” in beauty, and that its attempts to maintain market share eroded profitability. BH’s chief restructuring officer, Spencer Ware of Riveron Management, said the business saw “ultimately unsuccessful” launches for different product lines, including collaborations with celebrities Doja Cat and Iggy Azalea, which “fell below expectations.”
In 2020, BH generated a loss of $22.5 million.
Revolution plans to incorporate BH into the company during 2022, and provide product development, supply and distribution services to the brand.
Revolution chief executive officer Adam Minto said that BH’s cruelty-free, vegan cosmetics offerings align with Revolution’s “ethos.”
Revolution is known for affordable and trendy products, including Makeup Revolution, Revolution Plex Hair, Revolution Tanning, Revolution Skincare and Revolution Wellness. The business had 78.6 million pounds in sales for the first half of its fiscal year ended Aug. 31, up 39 percent year-over-year. Plans are in the works for Revolution Fragrance and Revolution Man.
The company’s products are sold across about 15,000 doors in the U.K., U.S. and other markets, including Boots and Ulta Beauty.
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