Beauty Brands Shuts Down Stores Following Chapter 11 Bankruptcy

The beauty retail landscape is undergoing significant changes as **Beauty Brands**, a cosmetics chain, announces the closure of several locations following its previous Chapter 11 bankruptcy filing in January 2019. The company plans to shut down stores in the Kansas City metropolitan area, with closures scheduled for **December 28, 2025**. This decision reflects broader trends impacting the beauty industry, characterized by shifting consumer preferences and the growing dominance of digital sales channels.

According to **McKinsey’s** “State of Beauty 2025” report, the global beauty market is valued at approximately **$450 billion**. While the industry experienced robust growth of about **7% annually** from 2022 to 2024, recent geopolitical and economic uncertainties, coupled with market saturation, have presented new challenges. The report suggests that online sales channels are expected to comprise nearly one-third of global beauty sales by **2030**, up from **26%** in 2024. This shift underscores the diminishing role of brick-and-mortar stores.

The difficulties faced by Beauty Brands are echoed by the recent decision from **Ulta Beauty** and **Target** to terminate their partnership, which is set to conclude in **August 2026**. This collaboration, which began in 2021, included over **600** Ulta shop-in-shop locations within Target stores. Both companies announced their mutual decision to end the arrangement, citing various strategic considerations, including staffing needs and inventory challenges.

Target has faced ongoing issues with out-of-stock products, which have impacted the partnership since its inception. The retailer has increasingly utilized secured merchandise displays in response to theft concerns, a trend noted by **Retail Dive**. Despite the termination of this partnership, Target has indicated plans to continue offering a diverse beauty product selection.

Beauty Brands’ Closure Plans

Beauty Brands, which emerged from bankruptcy in 2019, is now focusing on a significant contraction. The upcoming closures will affect locations in **Shawnee** and **Country Club Plaza**, both in the Kansas City area, as well as another store in **Lawrence**, Kansas. As of now, Beauty Brands operates only **15** stores across three states, a stark decrease from its peak of **58** locations prior to the bankruptcy.

The company has reassured employees affected by the closures that many will be offered transfers to other locations within the Beauty Brands network. Currently, the company employs over **600** trained customer service associates and salon professionals across its remaining stores.

The competitive landscape of the beauty industry continues to evolve, with digital retailers making significant inroads. As consumers increasingly turn to online shopping, traditional beauty retailers are compelled to reassess their strategies and adapt to new market realities. The closures of Beauty Brands locations are part of a wider trend affecting brick-and-mortar beauty shops, mirroring the challenges faced by other retailers in the sector.

As the beauty industry navigates these tumultuous waters, companies will need to innovate and strategize effectively to maintain relevance and profitability in a rapidly changing environment.