A brand insider said the business was ‘not immune’ to the global economic volatility
Gen Z-focused cosmetics e-tailer Beauty Bay has abandoned plans to list an initial public offering, according to Sky News .
Said to have been planned for the last year, a brand insider said that the business was “not immune” to economic volatility, despite carrying no debts.
City sources said that the business, which sells products from Coco & Eve, Filter by Molly Mae and The Ordinary, as well as its own-brand skin and make-up lines, could be toying with a partial sale to new investors.
The business could also attempt to buy other brands as it continues to expand by other means.
Founders Arron and David Gabbie – who are brothers – have appointed Threadstone Capital, a US firm, to advise the company on its next steps.
Brokers at Threadstone oversaw the sale of Cult Beauty to THG last year.
The current economic climate has been worsened by Russia’s invasion of Ukraine, while the rise in inflation has ground London’s flotations to a halt.
High inflation is also burdening markets all over the world.
Coty shut down its plans to list on Brazil’s stock market due to the poor financial market in the region.
Beauty Bay declined to comment on its IPO decision.