Upscale makeup brand Paula Dorf filed for bankruptcy protection last week. The company claims the filing was strategic, but industry experts say the line has too many skus and not enough new, innovative items that spur growth.
Prestige beauty products saw a sales decline in 2008 and have experienced continued weakness this year.
Procter & Gamble has decided to cease United States distribution of the storied Max Factor makeup line. Max Factor, which began in 1909, is a billion-dollar line but gets a majority of revenue from international sales. The company was founded in 1909 by a Russian immigrant who coined the word "makeup" and is credited with helping popularize its daily use.
Women's Wear Daily is reporting (subscription required) that Stila Cosmetics, which has been struggling in recent weeks, has been acquired by a private equity concern. Stila, which was owned by Estee Lauder until 2006, temporarily closed its website (and perhaps the entire company) in late March. The sale of Stila would presumably allow the brand to continue operations and pursue new initiatives.
Youth cosmetics manufacturer Jane & Company filed for Chapter 11 bankruptcy due to poor liquidity. Jane reportedly has $25 million in annual sales from items like its "Makeover in a Box." The company, which sells its products at mass-market level, is restructuring its debt and plans to continue operations while seeking a buyer for the business.
