In the dynamic world of cosmetics, businesses either thrive or wither away. Every now and then, dark clouds form, casting uncertainty on even the brightest stars of the industry. One such is Morphe Cosmetics, which has been making headlines recently, leaving many wondering: “Is Morphe going out of business?”
Recently, the cosmetic brand made an announcement about shutting down its U.S. retails stores, and this has raised concerns in the heart of its loyal customers and enthusiasts. But what’s really happening with Morphe? Is Morphe going out of business really? Let’s find out in this post.
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A Closer Look at Morphe Cosmetics
Morphe Cosmetics, founded in 2008 by Chris and Linda Tawil, started as a beacon of innovation in the beauty industry. It wasn’t just any cosmetics brand; Morphe was synonymous with vibrant eyeshadow palettes that wouldn’t burn a hole in your pocket.
The true genius behind their meteoric rise was leveraging influencer collaborations. Teaming up with big names like Manny Gutierrez, Nikita Dragun, and Charli D’Amelio, they dominated social media and earned a loyal customer base.
These collaborations weren’t just marketing tactics; they were instrumental in defining Morphe’s brand identity. However, as with many tales of success, challenges lay in wait.
Is Morphe Going Out of Business?
Well, let’s answer this question straight out of the box. Morphe, in January 2023, decided to shut down all its U.S. retail stores. With an established presence in 18 prime U.S. locations, this announcement left many fans and industry experts stunned, speculating on the causes behind such a significant decision.
The brand made this announcement through its Twitter account, announcing that the brand will be permanently closing the doors of all its US stores. In the announcement, they thanked their loyal customers for their love over the years and then announced this significant pivot in its business.
However, even though the brand announced discontinuing the sales of its products in the U.S, that doesn’t mean they aren’t operating outside the borders of America. So, it means they are not completely closing their doors – they aren’t completely going out of business.
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Why is Morphe Closing Down?
Multiple factors contributed to this drastic decision. The brand has reportedly weathered years of financial instability, legal issues, and significant reputational hits.
Apart from that, the very influencers that propelled Morphe to the zenith of success later became a cause of their downfall. Controversies surrounding Shane Dawson, James Charles, and Jeffree Star damaged the brand’s rapport with its dedicated followers.
Beyond these controversies, Morphe’s business decisions have been questionable. Their rebranding to Forma, intended as a beauty brand incubator in 2020, did not achieve the desired traction.
By October 2022, there were already rumours spreading about a possible Chapter 11 bankruptcy filing happening, and that eventually came true for Morphe stores in early 2023.
Will Morphe Still Sell Online?
While the curtains may be drawing on their physical U.S. presence, Morphe isn’t exiting the stage completely. Emphasizing the future, the makeup brand announced its intention to bolster its online and wholesale sectors.
Their products will remain available to loyal customers via their website and trusted retailers, including giants like Target and Ulta. Their shift towards e-commerce and wholesale operations is a strategic decision aimed at reshaping their presence in the beauty market.
Morphe Closing Down; What Do the Employees Have to Say?
Amidst corporate decisions, the voices of employees often echo the loudest. Many were caught off-guard, expressing their shock and dismay across social media platforms. The sudden clearance of inventory after Black Friday, coupled with an unexplained halt in product shipments, led to mounting apprehensions.
Sadly, their worst fears were confirmed in a single Zoom call – with some employees receiving only a day’s notice.
Are Morphe Makeup Stores Outside of the US Closing Down?
Despite the upheaval in the U.S., Morphe’s international presence remains intact. All non-U.S. stores are set to continue operations, signalling the brand’s desire to maintain a global foothold. Their focus, for now, seems concentrated on restructuring and recalibrating their strategy in the American market.
So, if you are asking, ‘Is Morphe going out of business?’ because you are a loyal customer outside the country, then you are in luck. You can still buy Morphe cosmetics products of your choice whether online or outside the borders of America, then the answer is yes!
What Are Some Other Popular Cosmetic Brands That Have Also Gone Out Of Business?
Even though we are not proud to say it, the truth still remains that Morphe is not the only cosmetic brand that has decided to take this type of bold step in recent times. Several popular cosmetic brands have faced financial hardships or have gone out of business over the years.
While some of these brands have completely shut down, others have rebranded, restructured, or found new ownership to continue operating in some capacity. Let’s take a quick look at some of them.
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Max Factor
A pioneer in the beauty industry, Max Factor was founded in 1909. While the brand is not entirely out of business, it has significantly reduced its presence in the US. However, it also remains popular in other international markets.
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Bonnie Bell
Best known for its iconic Lip Smackers lip balms, Bonnie Bell struggled with changing market demands and ended up selling its Lip Smackers division in 2015.
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Prescriptives
Launched by Estée Lauder Companies in 1979, Prescriptives was an innovative brand that offered custom-blended foundation. It closed all its physical counters in 2009, though it briefly maintained an online presence before the brand was eventually discontinued.
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Revlon
While not entirely out of business, Revlon has faced significant financial struggles in recent years. The brand has had to restructure debt and faced stiff competition from newer, more agile competitors.
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Almay
A subsidiary of Revlon, Almay has experienced declining sales over the years. While it’s still around, its presence and influence in the cosmetics world have decreased.
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Stila
Stila was founded in 1994 by a celebrity makeup artist. But the brand had faced financial hardships and underwent a series of ownership changes. It went through bankruptcy before being purchased by Patriarch Partners.
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Del Laboratories
Known for its brands like Sally Hansen and NYC (New York Color), Del Laboratories was once a significant player in the beauty industry. It faced challenges in the 2000s and was eventually acquired by Coty Inc.
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Jane Cosmetics
Popular in the 1990s and early 2000s, Jane Cosmetics also faced tough times and went bankrupt in 2009. However, it was later revived with a new image and strategy.
What Are Some Popular Products of Morphe?
Morphe, since its inception, has made a significant mark in the beauty industry with an array of popular products that have been praised by both enthusiasts and professionals. One of the brand’s standout offerings is its extensive range of eyeshadow palettes.
The 35O – Nature Glow Eyeshadow Palette became an instant hit, loved for its warm, earthy tones and blendable formulas. The palette’s diverse mix of matte and shimmer finishes, combined with its affordability, cemented its place in many makeup collections.
Morphe’s collaboration with influencers brought other fan-favorites to the fore, most notably the James Charles Artistry Palette. This palette, created in collaboration with YouTube sensation James Charles, boasts a rainbow of vibrant colors designed for artists who wish to unleash their inner creativity.
Apart from eyeshadows, Morphe is also celebrated for its range of makeup brushes. These brushes, crafted with both the professional artist and everyday user in mind, offer quality at a wallet-friendly price point.
Their brush sets, like the Morphe X Jaclyn Hill The Master Collection, have become essential tools in many makeup bags. To complement their brushes, Morphe introduced setting sprays, with the Continuous Setting Mist rising as a favorite for its fine mist and long-lasting hold.
Final Note
“Is Morphe going out of business?” isn’t a straightforward question. While they have retracted from the U.S. physical retail scene, they are adapting, focusing on digital avenues, and preserving their international presence.
Morphe’s journey is a clear indication of the volatile nature of the beauty industry, the power of public perception, and the resilience required to navigate challenging times. The brand’s next chapter remains unwritten, but all eyes will undoubtedly be watching.