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, popular beauty brand Beautycounter is no longer.
The company, which was founded in 2013 by Gregg Renfrew, simply closed with a curt announcement to reps selling the brand.
What happened?
Here's what we know about why Beautycounter closed, and what Gregg sees happening in the future now that the well-known makeup and skincare line is kaput.
So, why did Beautycounter close?
Instead of being able to shop makeup and skin care items, a statement on the company'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 statement, customers can shop Beautycounter products at Ulta in store through July, and online beyond that.
The statement then teases a new launch later this year, and invites customers to sign up for 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 before it was sold back to the founder, the company "experienced significant market and channel headwinds" over the past 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 back at the helm, a shocking email went out to reps on April 17, 2024, and an abrupt statement was shared to Beautycounter's social media channels.
Beautycounter simply cut ties with its reps.
Reps who sell Beautycounter received an email saying their agreement with Beautycounter was terminated, effective immediately.
“In connection with a sale, the Company is shutting down its operations and intends to wind-down and dissolve in the near-term. You will receive payment of all accrued and unpaid commissions through the Termination Date, and you shall otherwise have no further rights to any bonuses, commissions, or other 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 "was forced to close its doors."
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 bottom of my heart. While things have been difficult recently, I am hopeful and confident that, together, we can build something new and impactful. Our work is only beginning."
Not surprisingly, reps and customers struggled with the news that Beautycounter is closing. One person begged on X, "Are there any journalists writing about the Beautycounter business stuff and how selling it was a major source of income for women and now they will be out of an income stream? Because I want to read that piece."
According to a CNBC story published in Jan. 2024, as many as 65,000 people advocated for the company by plugging the products on social media and receiving a commission for sales.
