Beauty partner of Australian singer Iggy Azalea has been rescued from the brink of collapse after filing for bankruptcy last month
London-based cosmetics company Revolution Beauty has acquired beleaguered beauty name BH Cosmetics for US$3.9m.
The beauty business of Adam Minto and Tom Allsworth brings the American make-up brand back from the brink of collapse, after it filed for Chapter 11 bankruptcy last month.
A beauty partner of Australian singer Iggy Azalea and American rapper Doja Cat, BH Cosmetics said that a series of unsuccessful launches and the impact of Covid-19 had contributed to the downturn.
Prior to the pandemic, BH delivered net revenues of $55.8m.
In 2020, however, revenues plummeted to $33.7m – a loss of $22.5m.
Revolution’s founders, no doubt, will want BH Cosmetics to return to its former glory with the takeover.
“BH Cosmetics is an iconic US born brand with a loyal fan base and social platforms and loved by celebs and make-up artists everywhere,” said Minto, Revolution’s CEO.
“A cruelty-free vegan brand, BH aligns with our ethos.
“Its strong offering in colour cosmetics and brushes, perfectly complements our business.
“Bringing BH Cosmetics into the group will help us accelerate our growth trajectory in the US and leverage our existing global ecosystem of distribution.”
Revolution has also taken over operation of BH’s social media channels, where it boasts 6.5 million followers.
Revolution intends to utilise its reputation in the US, UK and internationally to revive the brand with new product launches.
“Like us, BH has a strong heritage as a challenger brand and has disrupted the traditional beauty market in the US through their innovation,” added Minto.
“We remain focused on building a British global beauty brand, capturing the vast market opportunity in mass beauty and continuing to win customers around the world.
“We’re confident the acquisition will deliver sustainable value for all our stakeholders over the long term.”