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Makeup brand Morphe closing all stores

Morphe is closing all its U.S. stores.

A former high-flying brand that was once valued at some $2 billion is pivoting to e-commerce and wholesale.

Morphe is shuttering all its U.S. locations.  The makeup brand will now sell its products in the United States only on its e-commerce site and at select retail stores.

After closing rumors by store employees circulated on social media, Morphe confirmed the news in a tweet posted to its account. According to various media reports, there were 27 Morphe stores open in the U.S. prior to the tweet.

"We have made the difficult decision to close all Morphe stores in the U.S.,” the company wrote. “We are forever grateful to our store teams for their passion, talent and dedication over the years.”

In a second tweet, Morphe wrote: "Customers can continue to shop Morphe online and at select retailers. Morphe stores outside the U.S. will remain open."

The company said it decided to shutter its physical stores in order to enhance its focus on its wholesale and e-commerce operations going forward, reported WWD.

“We believe this shift will position Morphe to better compete in the broader beauty landscape and more efficiently reach our customers where and how they shop,” the spokesperson said.

Morphe was founded online in 2008 by brother and sister duo Chris and Linda Tawil who also sold their products at trade shows. The brand gained a dedicated online following for its affordably priced brightly colored eye shadow palettes and make-up brushes. Its popularity was fueled by partnerships with powerful influencers, established make-up artists and other social media stars. In 2019, private equity firm General Atlantic acquired a 60% stake in Morphe in a deal that valued the company at $2.2 billion.

But Morphe’s start started to fade in 2020 amid COVID-19 as make-up sales fell. It also had to sever ties with two of its biggest collaborators when one was accused of using racist language and the other of sexual misconduct. The brand found itself challenged by an increasingly competitive beauty marketplace in which skin care started to take prominence over make-up.

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