In 2021, Beautycounter saw a ground-breaking acquisition for clean beauty when private equity firm The Carlyle Group purchased a controlling share at a staggering $1 billion price. However, the collaboration came to an unpleasant end three years later.
Carlyle wanted out and has been exploring interested parties with the assistance of Goldman Sachs due to a change in its investment strategy and Beautycounter’s underperformance; sources said WWD. Gregg Renfrew, the company’s founder and CEO, announced on Thursday that she will be purchasing her brand back from foreclosure, making her the new owner.
The firm’s holding company, Counter Brands LLC, is closing, and Renfrew is forming a new organization that will retain the name and properties of the brand. Two weeks from now, it will relaunch.
Beautycounter made job cuts on Wednesday as part of the modifications. However, it is still unknown how many employees were affected. While it assesses its retail strategy, its two standalone locations in Denver and New York will close; however, its seasonal location on Nantucket will stay open.
When Renfrew founded Beautycounter in 2013, she was a trailblazer in the clean beauty industry. She established the first-ever “Never List,” a list of more than 2,800 dubious or dangerous substances the firm does not use to formulate its products.
It began as a direct-to-consumer company, grew to employ 65,000 direct salespeople, and then ventured into retail distribution, most recently partnering with Ulta Beauty. It was in around 550 Ulta Beauty doors as of January.
Veteran of the sector Marc Rey took over as CEO in January 2022, but he left a year later. In January 2024, Renfrew resumed his role as CEO.
The Carlyle Group said in a statement to WWD that Beautycounter faced significant challenges in the market and distribution during the last three years.
“We increased marketing spend, drove innovation to expand the product portfolio, and improved the omnichannel strategy—and we invested additional capital into the business to support these initiatives along the way—as part of our every effort to support the brand,” the spokesperson said. Nevertheless, the company kept losing momentum. Given the substantial short-term financial requirements, we concluded that selling the company back to Gregg would assure business continuity and be in everyone’s best interests.
Since late 2023, The Carlyle Group has openly disclosed that it has shifted its concentration from American consumer, media, and retail industries to technology and financial services. It’s unclear what will happen to its 2021 investment in the men’s grooming business Every Man Jack, although there were rumors in the media that it was considering selling.
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