What actually happened with Beautycounter? Are they still in business? Will they be back at all? As someone who used to work with Beautycounter, here’s what I know so far and what lead to the downfall of this billion dollar skincare brand.
Beautycounter is gone. We just found out that it also won’t be back in 2024. Which, honestly, a lot of us had already suspected. Which means, what we know and experienced with Beautycounter previously, is no more.
When Beautycounter told us on April 18th that they were ceasing operations, none of us had any idea this was coming. I think that some of the head consultants were told a few hours before a mass email went out to all consultants. It was strange, a lot of us thought it was spam at first because the email address wasn’t familiar. But it pointed to a Zoom meeting with Gregg Renfrew to give us an update.
The Zoom call was maybe 10 minutes long? Where Gregg read from a paper stating that Beautycounter was ceasing operations and that more information will be coming out later.
Information has been dripped out but only to certain high level former consultants and it’s up to them to share that info if they decide to. For those of us that were not at that level, we are left totally high and dry without information. All of this still leaves everyone with more questions than answers.
What actually happened?
Beautycounter was founded in 2013 by Gregg Renfrew who was looking for better products for her family and friends. She realized how many products are full of very harmful chemicals that we’re putting on our skin multiple times a day. She saw a need for better products and created her company to fill that void.
Beautycounter started with selling these products on their websites and then included a Direct Sales model because Gregg felt that the best way to spread the word about the products and the need for them, was to have consultants at the grass roots level talking about the industry and need for change.
Beautycounter also opened up in retail spaces, creating dedicated Beautycounter stores and also having products in places like Ulta, Sephora, and Target. By 2018, the company was valued at $400 million dollars.
2020 Pandemic hit and Beautycounter say massive growth. People were out of work and stuck at home needing to pay the bills. Beautycounter was a light for them in that tunnel. People overall were becoming more aware of what they were putting on their bodies and understanding the need for better products. Sales were at record highs.
Then in 2021, Beautycounter dropped a bombshell on everyone. Gregg had sold the company to The Carlyle Group and they now held majority stake in the company. This deal now put the company’s value at $1 Billion.
The Catalyst to Beautycounter’s Downfall
After this sale, so many of us felt uneasy. The Carlyle Group does not have a great reputation and is known for buying companies so they can transfer debt from other companies. No one could understand why Beautycounter and Gregg made such a move.
Our unease was founded because once Carlyle took over, it became apparent that they didn’t understand the beauty industry, the needs of this business, or the basics of a direct sales company. Pay structures were quickly changed along with employees and management. We would be introduced to new hires and they would be gone in less than a month.
In 2022, Carlyle forced Gregg out of the company. This is what happens when you let investors take majority share, they can then get rid of the founder. This was spun as a “sabbatical” for Gregg but no one actually believed that.
At some point, Carlyle decided Beautycounter wasn’t performing like they expected but what they expected wasn’t clear. So in response, they stopped investing money in the company. Instead of making changes to operations, like how most businesses actually manage things, Carlyle just stopped funding Beautycounter. At the time, we had no idea this was happening.
At the beginning of 2024, Carlyle brought Gregg Renfrew back on as CEO. Gregg was under the impression that she was there to run the business and bring it back from the brink. However, the company was too far gone for that to happen and Carlyle knew it. Carlyle’s exit plan was already in motion and the holding company, Counter Brands LLC went bankrupt.
This left Gregg scrambling to save her company. She bought back her company in a foreclosure sale and was able to retain some Beautycounter assets such as the name, some products, and the mission. All of this happened behind closed doors and without employees and consultants knowing about it.
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What about the consultants?
All Beautycounter consultants lost their income and their teams on April 18th, 2024. The majority of all HQ employees were let go immediately and consultants were given only hours notice before losing their income.
G2G Newco is Gregg Renfrew’s new company that she used to purchase back Beautycounter and some of its assets. A few employees remain with this new company as they work to get it built back up. They have to build everything from the ground up again. That means an all new website with checkout system, product availability, production, and fulfillment. This is a lot and via the last communication, Gregg said that it would be 2025 before they are up and running. No date was given, just a generic “2025”.
She also reiterated that the company’s structure, product selection, and earning opportunities are being evaluated. Some have speculated that this new company will be working off of an affiliate model and not going back to network marketing style. But the reality is, no one knows what will happen at this point.
Is Beautycounter totally out of business?
As of right now, yes. The Beautycounter brand and company as we knew it, is gone and will not be back. Previous Beautycounter assets that include marketing, products, and product names and formulations were purchased in a foreclosing sale by Gregg Renfrew under a new company called G2G Newco. If Beautycounter comes back, it will be a completely different company with a different look, feel, and operations. We are hoping that the products will remain the same with the same high quality and standards.
Can you still purchase Beautycounter?
No, Beautycounter is not available for purchase online. If you worked with a consultant, reach out to them because we have channels open to us to get products. This is not via the company. A lot of consultants have products they can sell and we have a network to stay in touch with other previous consultants to get products for our clients. So if you need something, please reach out because I might have it or might be able to find it for you.
Will these products come back?
I can’t say with certainty that they will. I only know that Gregg has mentioned that she will be bringing products back in a statement given, “We look forward to selling Beautycounter products that our community knows, loves, and trusts.”
It’s possible that products that do not return are products that perhaps weren’t doing as well. And it’s possible that we might see some reformulations. We can only speculate at this point.
What are my next steps?
If you used Beautycounter products before and are looking for alternatives, I am working on providing resources for my community. Jump into my Facebook group or signup for my newsletter because they get all the information first.
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