THE WHAT? Men’s skin care brand, Disco has ceased trading and filed for Chapter 7 bankruptcy. The brand is said to have between 50 and 99 creditors and estimated liabilities of between US$1 million and US$10 million.
THE DETAILS According to a report published by Retail Dive, the brand’s Founder, Benjamin Smith is the Founder of Paradigm Capital, which owns 49.12 percent of the brand.
THE WHY? Founder Benjamin Smith revealed on LinkedIn, per Retail Dive, that Disco failed to raise the capital needed to stay afloat and had been subject to three failed acquisition attempts in the past 12 months.
He reflected that the brand has overly relied on its hero product and had not resonated with men at scale within a competitive market. “This unfortunate outcome left shareholders with nothing, disbanded our great team, thousands of subscribers were left out to dry, and countless vendors were not paid. Shutting Disco down resulted in the loss of millions of investor capital from friends, family, close connections, and funds I respect and trust.”