astronaut
Well-known member
To possibly shed some light to the "Stila folds" thread:
Stila Cosmetics Firm Acquired - Beauty Industry News - WWD.com
Stila Cosmetics Still Alive?
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Stila Cosmetics Sold Again, This Time to Patriarch - WSJ.com
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Stila Cosmetics Firm Acquired - Beauty Industry News - WWD.com
Stila Cosmetics Still Alive?
Quote:
Struggling indie brand Stila Cosmetics has found a last-minute savior: venture capital firm Patriarch Partners LLC. The deal is expected to be finalized on Monday. According to several sources, it’s been a rocky several weeks for the brand, which is said to have furloughed its entire workforce the last week in March due to the company’s inability to make payroll. Former owner Sun Capital Partners, which had acquired the brand from the Estee Lauder Cos., is said to have pulled the plug on the company’s financing at that time. The deal was confirmed late Sunday afternoon by Stila ceo Deanna Kangas and Patriarch Partners spokesperson Taylor Griffin. — WWD |
Stila Cosmetics Sold Again, This Time to Patriarch - WSJ.com
Quote:
By PETER LATTMAN and ELLEN BYRON Patriarch Partners, the New York-based private-equity firm, agreed to acquire Stila Cosmetics, a high-end makeup brand once owned by Estée Lauder Cos. Patriarch is expected to acquire the makeup company from Wachovia Corp. and CIT Group for an undisclosed sum. The lenders took the company over from Sun Capital Partners through a foreclosure sale after Stila defaulted on a loan. Stila, based in Glendale, Calif., has changed hands several times over the past decade. Estée Lauder acquired the company from founder Jeanine Lobell in 1999, and then sold it to Sun Capital in 2006. Traditionally, beauty products have proved relatively resilient during difficult economic times as women sought small, affordable pick-me-ups. But this recession is proving more challenging for high-end beauty lines, particularly as drugstore offerings have improved in quality. Stila, which maintains a cult following with products such as brown sugar lip gloss and pale seafoam blue eyeshadow, joins other high-end niche beauty lines struggling to tempt cash-strapped shoppers. The brand is sold in department stores and through specialty retailers such as Sephora. Patriarch Partners is owned by Lynn Tilton, whose holdings include Rand McNally maps and MD Helicopters, formerly a unit of McDonnell Douglas. The Stila acquisition comes as somewhat of a consolation prize for Patriarch, which narrowly lost an auction for the assets of Polaroid Corp. in a St. Paul, Minn., bankruptcy court this past Thursday. Sun's failed Stila investment is the latest in a string of disappointments for the turnaround firm. The firm, which has more than 80 companies in its portfolio, has seen at least 12 of them file for bankruptcy-court protection since January 2008, including retailer Mervyn's LLC and Jevic Transportation, a trucking company. |