Bankrupt Morphe Owner Acquired by Lenders for $690 Million

Forma Brands, the bankrupt owner of the Morphe makeup brand, reached an agreement with lenders Jefferies Finance LLC and Cerberus Capital Management to be acquired in exchange for $690 million in debt relief, according to a court filing.

No better bids emerged during the company’s Chapter 11 proceedings, bankruptcy court papers show.

The company, once valued at $2 billion, had a tumultuous stretch over the past few years. Sales hit $400 million in 2019, according to company documents, thanks to partnerships with celebrities and influencers. But the business deteriorated after Morphe cut ties with some of them for inappropriate behavior. ...