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Former employees are claiming that Morphe is closing down all retail stores without giving its employees adequate prior notice.
The company is a U.S.-based brand that is known for its affordable cosmetics and influencer collaborations. It is reported that they are undergoing major business changes, including shutting down several of their retail stores across the country.
Employees are taking to social media to talk about how they were told that their store was closing and how they were only given a 4-day notice period. Aprill, under the handle @HeyAprill shared a TikTok video of Dani Garza (@creepypeachy), a former store manager, who spoke about her experience with the same.
She said:
"They have been closing retail stores for over a year now, and they told us on the 22nd of December that our last day is on the 26th of December. What is that? A 4 or 5 days notice that we don't have a job anymore."
The video also claimed that the employees received a nominal severance payout. A Redditor, @SheKaep shared her experience as a customer. She posted a video of an empty store and her receipts of recent purchases displayed a 95% discount on products.
Morphe's alleged lawsuits revealed as the brand closes down several stores
According to a Redditor, @divadream, Morphe was sued several times over the past few months, but details of the lawsuit were revealed behind a paywall, which is why it never gained traction. The document states that the founder and CEO of the hair care brand Playa, Shelby Wild, is suing the company.
Wild is suing the brand and its majority owner, the private equity firm General Atlantic, in New York State court, alleging that the company failed to adequately support her brand after acquiring it in 2020.
According to Wild, General Atlantic falsely represented itself as an incubator that would provide the long-term logistical, operational, and financial support that the brand needed to reach its full potential. She seeks damages of $15 million, the total amount she said she would have been owed in “performance-based incentives” over four years.
In a statement to the Business of Fashion, Wild said:
“Almost as soon as they took it over, it became clear that General Atlantic had sold me on a false promise. This culminated in their refusal to pay me the compensation I was owed from selling my company.”
General Atlantic commented on the lawsuit, claiming that the statements have been made without merit and that they will defend Morphe with regard to the same.
Morphe is rumored to be exploring a Chapter 11 bankruptcy filing and is estimated to have $600 million to $700 million debt. They have declined to comment on the ongoing allegations of their retail stores closing and it remains unknown if they will continue selling products online.
