Jaclyn Cosmetics goes BANKRUPT… (the end of her brand)
S and even one other Canadian stores. Not only were the morphe store employees affected, but a lot of the brands that morphe sells within their stores were also majorly affected. We heard from the owner of Suva Beauty who disclosed that, even though their brand is one of the best sellers for morphe, they werent told anything. If you dont know, weve been selling in morphe worldwide in all of their stores since 2019 and were actually one of the top brands in morphe, and here are some of the other brands they carry so in the past month or so weve been seeing a lot Of people specifically morphe staff posting about whats, been happening and just let you know as a brand sold in morphe. We knew nothing about this. We also heard from the founder of Playa Beauty theres, currently a lawsuit against morphe from Playa, accusing them of not holding up to their end of the deal and not making them enough money. We also now know that beauty influencers are among of some of morphys largest unsecured debts. We have James Charles being 02.1 million Jacqueline being owed a little over 2 million and Jeffree Star being owed 1.4 million. When these numbers first came out. A lot of us thought: well: does this mean that these influencers were some secret investor in the brand and thats why they were always pushing morphe so heavily? That would make a lot of sense, but Jen Loves reviews pointed something out that pretty much proves thats not the case.
These debts are listed under a form which states that these names are a list of creditors who have the 50 largest unsecured claims and are not insiders. Not insiders, which means Jacqueline. James and Jeffrey are not inside investors in the company, theyre Outsiders and for some reason morphe still owes them money. They have James, Jacqueline and Jeffrey all listed as contracts. So for all we know this could be money from their collabs or even their discount codes. That still havent been paid out now ever since news broke about morphe filing for the bankruptcy, a lot of people have been wondering if any of the other brands under Forma would also be filing independently. Besides morphe and morphy 2 Forma also carries lipstick, Queen bad habit, which apparently Emma Chamberlain was the face of Playa and Jacqueline Cosmetics. Since Forma clearly has some type of ownership over these Brands. It would make sense if we start to see them also file for bankruptcy. After all, we did see Jaclyns products being sold for up to 70 percent off and shift off to Discount stores like TJ Maxx and winners. Well, the other day Jacqueline Cosmetics, officially filed for bankruptcy. On the 12th of this month, Jacqueline Cosmetics filed in Delaware for chapter 11 bankruptcy. I think a lot of us saw this coming its no secret that Forma owns Jaclyns brand. I think a lot of people just assumed that Jacqueline was the sole owner of her brand and since she has a really good relationship with Linda, she just got a deal to sell her stuff in morphe, its kind of like Suva Beauty.
They have a deal with morphe to sell their products in the the morphe store and on their website, but they are owned by Forma. They arent listed on formas website as being their parent company, but Jaclyn Hill is whats. Really interesting is in the past. Jacqueline has called herself the owner of her brand, and I can say that I am launching a brand that I am so proud to be. The owner of. I cannot even begin to tell you, like Dustin Daly, also found a few tweets from Jacqueline that contradicted her status at Jacqueline Cosmetics. Two years ago, Jacqueline tweeted, happy Monday, Im announcing my next product for Jaclyn Hill Cosmetics. This week and Ive never been so nervous. In my life and someone replied and asked how come shes just listed as the founder and not the founder and CEO and Jacqueline responded writing I am the CEO as well. They just labeled me as the founder, which is fine. Then only a few months ago now someone replied to one of Jaclyns tweets, saying Jacqueline, doesnt own this business, but nice try and Jacqueline said I am the owner founder and CEO of Jacqueline Cosmetics, but shes really technically, not the owner Im sure she is the founder Im sure she may even be the CEO, but calling herself the owner is a bit of a stretch. Forma is the parent company to Jacqueline Cosmetics, which is kind of just a nicer way of saying this brand has ownership over you.
I looked up. Is a parent company, the owner – and this is what it says the owner is usually referred to as the parent company or holding company an unconsolidated subsidiary, is treated as an investment on a parent companys financial statements, not a part of Consolidated financial statements. A parent company is a company that owes more than 50 percent of the outstanding voting shares of another company. Therefore, it controls the other company or companies and can directly influence the business operations or take a more hands off approach on ownership. So maybe Jacqueline is even part owner, but shes, not a hundred percent, the owner of her own brand and thats. Why Jaclyns brand is being impacted by formas bankruptcy, Jacqueline Cosmetics even updated their q, a page since the bankruptcy news broke, and this is what they added. How does the former Brands announcement about a change in ownership through a court supervised process impact Jacqueline cosmetics and they wrote this same Jacqueline Cosmetics products? Customers, love along with exciting new launches, will continue to be available online and in stores through the Jacqueline Cosmetics website and our Retail Partners. This steps, former Brands our parent company, is taking, are designed to make it an even better partner to Jaclyn Cosmetics, as we continue providing customers with inspiring beauty products. So it sounds like the brand is still planning on releasing products in the future and theyre being hopeful that this bankruptcy will work out in the long run.
When news started to get around about Forma and Jaclyns brand, she took to Twitter and wrote. I wish that all the people who sit on their phones and judge everyone online had 8 million followers watching their every move. You guys are so quick to judge, but once you experience being judged its a whole different story, I would love to have that conversation with you. She then tweeted goodbye Twitter, but a lot of people werent, feeling that sorry for Jacqueline, especially after what happened with Koz one person, replied to Jaclyns tweet and wrote. Please please address the Cozy situation. I have had a small business since 2013., its so unimaginable to me that a larger company could steal my hard work and I wouldnt have the money to beat them in court, its really sick and sad. We really want answers. You know that talk, as you guys know, Jacqueline made a Home Comfort Line called cozy completely stealing the name from Keelan Nicholsons brand cause. I have a whole video going over all the details about what happened so Ill have that link below, but in the end, Keelan ended up having to close her brand down and change the name, knowing that Jaclyns brand would most likely overpower hers in search results because Of how big Jacquelines following is was a bigger worry for me is that the brand recognization itself, when you saw the word codes, but no longer you wouldnt, would no longer be Kalyn.
It would not like pose Kalin. It would become cos this Creator or cos this brand, and you would forget kind of about this brand, not to mention if someones walking around with a sweater like this or Im walking around with a sweater like this, someone might think Im right, Im repping that brand You know if they dont know about my brand. This happened all the way back in November and Jaclyn has still yet to address anything every day, her cozy Instagram account is filled with comments like still nothing almost two months later, and have no apology still waiting for the Scandal to be addressed before ever. Supporting Jacqueline and any business of hers again, but I may be waiting for a while. You stole this from a Canadian Creator. No creativity on your part, just stolen ideas, and not only has Jacqueline, not addressed the obvious. She also completely abandoned and stopped posting on her cozy brand page. She hasnt posted anything to Instagram in nearly three months and she hasnt restocked any of the sold out items on the website, its just sad that she ruined this Creators business that shes worked hard on and owned for years, a business that she built her whole platform Around all for Jacqueline to just come in post, one overpriced collection and leave so far, Jacqueline hasnt responded to anything she hasnt addressed a bankruptcy. She hasnt addressed what the future of her brand might look like nothing, anyways guys.
Let me know what you think about everything down below: do you think Jaclyns brand will be able to come back from the bankruptcy and revive itself, or do you think its going to be downhill from here? Also, let me know what you think about the whole code situation. Should Jacqueline come out and address the name and do you think she should do the right thing and apologize to Kailyn and officially change the name of her brand? Let me know and Ill see you next time.