The make-up brand, valued at US$2.2 billion in 2019, is now closing its stores in the U.S.A., following a 30% drop in turnover between 2019 and 2021. It has become a symbol of the fragility of business models based on influence marketing.
On 5th January 2022, Morphe announced the closure of all 19 US stores after videos from staff denounced dismissals without notice, that went viral on TikTok. Following this, a possible bankruptcy filing for Morphe’s parent company – Forma Brands – that was revealed by WWD in October 2022, seems more likely to happen. Whereas in 2019, Morphe posted a turnover of US$500 million with a profit of US$130 million (at 26% of revenue), the group reported sales of US$350 million in 2021, i.e. a fall...
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