Morphe Cosmetics Limited - Administration

Morphe Cosmetics Limited, a UK-based online and retail cosmetics darling, has been successfully sold to Forma Brands UK via a pre-pack sale.

The company offered wholesale distribution of its products and also sold directly to consumers online and via its eight retail stores (seven in the UK and one in Holland). Unfortunately, tough market conditions and disproportionately high rent obligations made the existing network unviable.

Following the appointment on 31 July of Mark Blackman and Benjamin Wiles of Kroll as joint administrators, they confirmed the sale of the online and wholesale parts of the business. The eight stores have been shut with immediate effect and the parent company, Forma Brands LLC, has confirmed that all impacted staff will receive an enhanced redundancy package.

The joint administrators were supported by Sarah Teal and Louise Snipe of Shoosmiths.

DLA Piper acted for Forma Brands in this matter, who ultimately acquired the business and assets, leaving behind the retail operations. The DLA Piper team was led by Neil Riley (Partner, Restructuring) with support from Rowan Aspinwall (Legal Director, Restructuring), Laura Carrier (Senior Associate, Restructuring) and Alice Gordon (Trainee, Restructuring), with Jane Hannon (Partner, Employment) supporting on employment advice.