La Bouche Rouge Faces Financial Challenges

La Bouche Rouge Faces Financial Challenges

THE WHAT?  The eco-luxury beauty brand from France, La Bouche Rouge, has entered receivership.

THE DETAILS   BCM has been appointed as the administrator to oversee the proceedings. Paris-based firm Asteren is set to represent the interests of the creditors. Despite the ongoing financial restructuring, the Tribunal de Commerce de Paris has indicated that the brand’s operations will persist without interruptions as they evaluate their financial obligations and consider the potential sale of assets.

THE WHY?   The company’s financial turmoil arises primarily from liquidity issues. In an expansion bid, La Bouche Rouge secured an impressive 2.5 million euros in 2020, which included contributions from the French public investment bank BPI and various other stakeholders. This momentum was carried into the subsequent year when they raised another 10 million euros from investors, including Mirabaud Lifestyle Impact & Innovation and the Chalhoub Group. The capital was meant to facilitate their foray into lucrative markets such as China and the Middle East.