Could Birchbox be about to go bankrupt?

Birchbox bankrupt? The company at the end of 2022 posted a poster on its website announcing that they would not process more subscriptions or make shipments for the moment. The company has not updated its social networks and the blog on its website since the end of November, the last time it was updated was in October.

In the United States there have been some reports that Birchbox was investigating the possibility of entering the protection by Chapter 11 bankruptcyso the newspaper made it known WWD. They also explain in the article that FemTecHealth contacted creditors: “We believe that in the best interest of Birchbox and the entire FMTC family of companies spanning the US and Europe, a Chapter 11 or some equivalent structure may be necessary.«. According to WWD noted that Birchbox’s revenue projections fell from $74 million to $47 million.

For now, it is unknown what will eventually happen to the company in Spain, but there are rumors that it could have been acquired by its competitor Blissim, which entered the Spanish market just a few months ago.

Birch Box History

birch box, a beauty products subscription box, was founded in the United States in 2010 by Harvard Katia Beauchamp and Hayley Barna. This is one of the first product sampler boxes to hit the market and the benchmark for many other subscription boxes that have followed.

In the most important moment of the brand, it was said that it was worth about half a billion dollars and had 2.5 million active users worldwide.

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In 2018, the company was about to sell to QVC, but the talks ultimately came to nothing. However, Viking Global, which had previously led a $60 million round of financing in Birchbox in 2014, acquired a majority stake. Then the pandemic arrived and things began to go very badly for the brand, so ended up being sold to beauty startup FemTec Health for $45 million in November 2021 and CEO Katia Beauchamp sold all her shares and left the business; She is currently the CEO of Victoria Beckham Beauty.

On Instagram, madridvenek a beauty instagramer has posted a video talking about the Birchbox situation.

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