This Popular Beauty Brand Is Shutting Down for Good
An "accumulation of challenges, together with the global impact of COVID-19" are behind the decision.
The COVID pandemic has caused yet another casualty in the retail space. On Feb. 24, popular beauty brand Becca announced that it would be ceasing operations in the near future. In a statement, the brand, which sells makeup through mega-retailers like Sephora and Ulta, revealed that "an accumulation of challenges" had prompted the decision to shut down. Read on to find out when Becca will be gone for good. And for more popular stores winding down operations, This Beloved Chain Is Closing All Its Stores.
The company has been in business for over 20 years.
While many cosmetics brands come and go as trends in the makeup industry change, Becca managed to have serious longevity in a difficult business. The company was founded in Perth, Australia in 2001 and was worth a reported $200 million by the time it was purchased by beauty giant Estee Lauder in 2016. Becca is far from the only beauty brand to buckle amidst financial woes associated with the pandemic, however: This Beloved Brand Just Filed for Bankruptcy.
The brand boasts some of the best-selling cosmetics on the market.
Becca has more than just longevity on its side, however—the cruelty-free, PETA-certified beauty brand's products have become must-haves for many beauty enthusiasts.
In fact, the company's Shimmering Skin Perfector is the best-selling highlighter in the U.S., according to 2020 data from The NPD Group. The brand's celebrity collaborations, including the launch of palettes with stars like Khloe Kardashian and Chrissy Teigen, have also put it on the map globally in recent years. And for more on the latest retail closures, sign up for our daily newsletter.
The pandemic played a major role in the decision to shut down.
Becca didn't beat around the bush in terms of what led up to the brand's demise. "The global pandemic has had an impact on everyone around the world on many levels. It has also had a tremendous impact on so many businesses. At BECCA, an accumulation of challenges, together with the global impact of COVID-19, has sadly been more than our business can withstand," the company wrote in a statement.
According to 2020 financial statements published by Becca's parent company, Estee Lauder, the brand had suffered impairment charges to the tune of $85 million during the pandemic, indicating that its carrying value—what the brand is worth based on internal calculations—exceeded its fair value, or what it could likely be sold for.
Becca will start shutting down this fall.
The announcement that Becca will be ceasing production of its beloved products may have come as a shock to the brand's devoted customers, but you don't have to worry about running out of your favorite foundation or highlighter just yet. In the announcement regarding the brand's closure, the company revealed that it won't be shutting down in full until the end of September. The brand has not yet announced when its products will begin to be phased out of retailers. And for another iconic brand in trouble, check out This Popular Department Store Just Filed for Bankruptcy.