News Apr 3, 2009 @ 2:59pm

Stila Goes Bankrupt?

by Natalie Hormilla

stila lip gloss set.jpg We hear that Stila has gone bankrupt.

The story goes like this: The beauty brand, which is a favorite with beauty editors but is a little bit of a harder sell with girls that like bright colors on their faces, was sold by Estee Lauder to Sun Capital Partners in 2006, which means the products are only really available at Ulta and Bloomingdale’s besides beauty mecca Sephora.

We hear employees were given little advance notice, and arrived to offices that were shut yesterday morning.

Several attempts to contact Stila via e-mail and phone calls went unanswered.

And the Stila site says it’s down due to “routine maintenance” and that orders placed between March 23 and March 24 “may be canceled”.

Stay tuned.

UPDATE: Stila finally just got back to us, and they say that they’re “not going bankrupt” but “refinancing”. We asked what that means, and they said it means that they’re “reassessing their funds”…

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posted by sugarshock

Apr 03, 2009 3:26PM

this is very sad news, if true...perhaps one of the biggie brands like Estee or L'Oreal will try and scoop them up?

posted by guest

Apr 03, 2009 3:49PM

A company going bankrupt does not necessarily meaning it is closing. It a legal proceeding that basically allows the company to rework contracts and the such while they reorganize and hopefully eventually exit bankruptcy.

posted by guest

Apr 03, 2009 4:05PM

I hope to god it doesnt close... Stila is one of my FAVORITE brands! They always make such natural looking eyeshadows that are easy to wear and great for everyday use. Probably makes sense as to why I heard a lot of their palettes were at TJ Maxx and Marshals for the past month. Time to stock up!

- Amanda
http://laceandtea.blogspot.com

posted by Lauren

Apr 03, 2009 4:20PM

Comment #2: Yes, that's true, but that rarely happens.

posted by Lauren

Apr 03, 2009 4:24PM

Also, I don't think its a big seller anyways, that would be why Estee sold it. If Stila was making money back in 2006--during the boom--there is no way Estee would have let go of it.

posted by guest

Apr 03, 2009 4:43PM

#2 & 4 - not necessarily true. It depends on the type of bankruptcy you are filing for: Chapter 7 or Chapter 11.
Chapter 7 allows you to continue running your business while some of your debt is absolved.
Chapter 11 takes the business away from you and breaks it up and sells the pieces to help pay off the debt you owe.

So it sounds like if this item is true, they are in Chapter 11 bankruptcy.

posted by guest

Apr 03, 2009 4:49PM

Guest #6, you have it backwards. Chapter 11 allows you to reorganize and continue doing business. Chapter 7 - you are finished.

posted by guest

Apr 03, 2009 5:24PM

GUEST 7 - you are wrong . Guest 6 is right
I am a lawyer.
Please get your facts in order before you turn on your computer.
Clueless Posters

posted by guest

Apr 03, 2009 6:00PM

I can only speak to their lip glosses -- the only Stila products I used to purchase. I say used to because not only were they expensive (something like $18 a tube) but the packaging was terrible. Too much gloss would come out with each turn and once the little compressor thingy was screwed all the way to the top a quarter to half of the product was left in the tube, unusable. In other words: I felt like I was throwing away $5 of lip gloss. I switched to Sephora brand (just $10 a tube and no screwy packaging.)

posted by guest

Apr 03, 2009 6:56PM

#8, people make mistakes. No reason to be nasty.

posted by guest

Apr 03, 2009 7:00PM

I love it when people get sanctimonious and insulting when they are dead wrong. Guest #8, if you really are a lawyer, you need to sue your law school to get your tuition back. Poster #7 is correct.

posted by guest

Apr 03, 2009 7:04PM

Ditto to comment #11. Guest 8, you are wrong.

posted by rockferry

Apr 03, 2009 9:03PM

I bought their kajal eye liner recently, and it gives a gorgeous, smudgy line, but it is IMPOSSIBLE to sharpen. I don't even need a really defined point, but you have to be able to sharpen a pencil a little, and half the e/l was wasted when I tried. For $18? No thanks. I'll stick with my $2 Prestige Cosmetics liners.

posted by guest

Apr 04, 2009 11:24AM

Guest 8, guest 7 is correct. Chapter 7 is referred to as liquidation bankruptcy and chapter 11 is referred to as rehabilitation bankruptcy.

posted by my fall collection

Apr 04, 2009 4:01PM

Re: "refinancing, not bankrupt" update. Reminds me of when couples explain that they didn't break up, they're just taking some time apart.

Also, too many lawyers creeping Fashionista!

posted by guest

Apr 05, 2009 12:59PM

Stila is a fabulous brand. From their branding to packaging to the quality of the products. Now, I don't know about the details of their situation, but from a marketing/branding/PR perspective, they should not be going bankrupt. The problem with the beauty and the fashion industry is they are not embracing the web. As we know, traditional media/PR is dying. My absolute favorite magazine Domino...closing, why because they did not use the web to their advantage. The latest in the advertising industry, the J Walter Thompson ad agency's Chicago office is closing after 118 years! There is a major shift going on and these beauty brands need to make sure they are prepared for it. I suggest they all read "Groundswell-Winning in a World Transformed By Social Technologies" by Charlene Li and Josh Bernoff. Check out our site - http://girlsintech/net. We talk about everything pertaining to the web. I pray Stila does not close. We'll just have to wait to see what happens...

posted by guest

Apr 06, 2009 9:50AM

I'm sad to hear about this stila news and completely agree with number 16. There's actually a book coming out this month from the bestselling authors of "the power of nice" called "the power of small" and I think the concept behind the book is a great one that can be applied to a lot of the brands we're seeing not doing so well right now. If they would just take some small, seemingly unimportant steps (given how big their brands are), they could possibly see themselves succeed in these times! Why would they not create more of a web presence? they have the power to get attention with even the smallest of changes!

posted by guest

Apr 06, 2009 11:29AM

stila is a good brand. if they can't restructure--someone will buy them out

posted by guest

Apr 06, 2009 2:22PM

guest #18 companies are falling left and right. investment firms aren't buying failing companies like they used to. i say buy up as many smudgepots as you can now. then again... i'm certainly no expert.

posted by guest

Apr 10, 2009 6:47PM

Guest 14 is correct.

I also agree with Guest9, they are pricey and their packaging usually leaves something to be desired. The Stila product I did like (one of the first lip stains to come out, i think, after benetint, it was like a marker for your lips) I had trouble finding (not sure if they discontinued it). The glosses were pricey and I didn't find them special. I've bought their stuff over the years at TJMaxx and wasn't impressed with any of it. But I do hope they survive, maybe the reorg will get them into a lower pricepoint or with better distribution.