Sadly, BH Cosmetics first announced its bankruptcy a few weeks ago—and has now announced that the U.S. Bankruptcy Court for the District of Delaware has approved the sale process for its intellectual property, inventory, furniture, fixtures and equipment, unexpired contracts and related tangible assets.

The assets include internationally registered trademarks, domain names, a customer database of approximately 700,000 opt-in customer email addresses and more than 150,000 U.S.-based SMS text numbers, and social media accounts with a global audience of more than 6.5 million followers, as well as current inventory.

Bids for the assets are due February 11, 2022 at 12:00 p.m. Eastern, and an auction will be held on February 15, 2022 at 10:00 a.m. Eastern.

What’s Next for BH Cosmetics?

BH Cosmetics has entered into an agreement with RBI Acquisition Holdings, LLC to sell the intellectual property and certain inventory for $4,300,000, subject to adjustments as described in the asset purchase agreement.

The agreement is subject to higher or otherwise better offers through an auction process.

Chief Restructuring Officer and Co-Chief Executive Officer Spencer Ware stated, “The agreement with RBI Acquisition Holdings, LLC puts us on track to achieving maximum value for our creditors and stakeholders while allowing for flexibility throughout the sale process.”

Hilco Streambank Executive Vice President David Peress commented, “BH Cosmetics is known throughout the industry as having successfully activated a young and economically powerful audience.”

Peress continued, “As legacy cosmetics companies struggle to diversify and reach underserved segments of the market, the acquisition of the BH Cosmetics brand, which has meaningfully reached U.S. and European markets through both direct-to-consumer and wholesale channels, presents an exceptional opportunity to grow within the industry.”

The sale is being conducted on behalf of BH Cosmetics as a debtor in possession. The sale of the assets and Hilco Streambank’s retention are subject to Bankruptcy Court approval.