Santa Monica skin care and cosmetics brand Beautycounter is making more room on its shelf.
The company acquired beauty product maker Nude Skincare Inc. from Louis Vuitton Möet Hennessy last week. Financial terms of the deal were not disclosed.
Gregg Renfrew, chief executive of Beautycounter, said while it wasn’t looking to make an acquisition, the two brands ultimately shared the same ethos on offering safer beauty products.
The acquisition gives Nude’s co-founders, Bryan Meehan and Ali Hewson, an equity stake in Beautycounter along with Hewson’s husband, U2 singer Paul “Bono” Hewson. Ali Hewson will also join the board of Counter Brands, parent company of Beautycounter.
“Our mission is to get safer, high-performing products into the hands of everyone, and this acquisition advances that goal,” Renfrew said in a statement. “Ali and her team at Nude share the same unwavering commitment to education, safer products, and better laws that will move the beauty industry forward worldwide.”
Hewson said its company found a soulmate in Beautycounter and is looking forward to the newly formed partnership.
Beautycounter is known for its focus on developing safe skin care and cosmetics, banning more than 1,500 ingredients. Nude’s skin care line also follows specific formulation standards, leaving out certain toxic substances.
The deal will mark a shift in strategy for both brands as they plan to make a play for increasing distribution, particularly in the United Kingdom.
“Together we can deliver better products to more people across the globe,” Renfrew said.
Beautycounter products can be purchased in the United States and Canada as well as through independent consultants.
Nude’s items are sold on Sephora’s website in the United States. The firm has distribution deals with Space.NK in Europe and Mecca in Australia.
Renfrew launched Beautycounter in 2013. She previously served as chief executive of former children’s retail group Best & Co. in Greenwich, Conn.
Shipping Out
Fast-fashion retailer Forever 21 appears to be falling victim to the recent slowdown seen by cohorts H&M and Urban Outfitters and even larger retailers such as Nordstrom and Neiman Marcus.
The downtown apparel company ended its exclusive contract with Elizabeth, N.J., shipping firm EZ Mailing Services Inc., operating as EZ Worldwide Express.
The shipper filed for bankruptcy in January citing a disappointing holiday season. Its Forever 21 business has also declined precipitously this year, according to documents filed last month.
Forever 21 used EZ Worldwide to ship inventory to its stores from its warehouses. The filings show that the shipper billed Forever 21 from $352,000 to $428,000 a week between April 8 and May 5. That’s down from a range of $428,000 to $780,000 for the same period last year.
A source close to the transaction said Forever 21 did offer to increase its delivery business with EZ Worldwide in hopes of helping the shipper stay afloat. However, because EZ Worldwide had downsized its operations the parties were unable to come to an agreement.
EZ Worldwide entered into a contract with Forever 21 two years ago with an agreement to ship to at least 171 stores until 2019, according to court documents. The deal proved lucrative as payments from Forever 21 accounted for nearly half of EZ Worldwide’s annual revenue of about $53 million.
Forever 21 said it has since transitioned to other delivery providers and accepted the termination agreement with EZ Worldwide.
“Forever 21 and EZ Worldwide Express came to an agreement to separate, after EZ’s difficult financial conditions meant that it could no longer provide the same delivery services,” the company said in an emailed statement. “Forever 21 looked at different financing options to assist EZ during its difficult financial time in order to continue the relationship, but were unable to come to an agreement.”
Forever 21 employs more than 35,000 people and operates more than 600 stores worldwide, including outposts in China, Europe, India, and Mexico.
Revolving Doors
El Segundo activewear brand Fabletics, co-founded by actress Kate Hudson, will be opening a roughly 2,600-square-foot store at Del Amo Fashion Center in Torrance this month. Shoppers can expect exclusive collections, fitting appointments, and the option to buy online and pick up in store. … “Scream Queens” actress Skyler Samuels and Andrew Duplessie launched iOS mobile app Tipster this month. The app allows users to receive personalized style advice from industry experts and tastemakers for fashion, hair, and beauty. Prices range from $2 to about $20 for a 30-minute video-chat styling session. … Online menswear suit maker Combatant Gentleman, headquartered in Irvine, will be opening its first brick-and-mortar shop this month in Santa Monica. … Black Tux, an online tux rental firm based in Santa Monica, opened its second shop in that city last month. Shoppers can expect to view and try the company’s entire collection at the store.
Staff reporter Subrina Hudson can be reached at [email protected] or (323) 549-5225, ext. 251.
