Tori Belle Cosmetics’ parent company LashLiner has filed for bankruptcy.

As per an August 8th Chapter 11 filing in the Western District of Washington, LashLiner had $5.2 million in liabilities at the end of FY 2021.

I hadn’t heard of LashLiner or Tori Belle Cosmetics till a reader reached out earlier today.

LashLiner and Tori Belle operate in the cosmetics MLM niche. The companies were co-founded by Laura Hunter (CEO) and Bob Kitzberger (President).

Hunter and Kitzberger share a 50/50 equity stake in LashLiner.

This is direct from LashLiner’s website;

Laura Hunter invented magnetic eyeliner in February 2018, a game-changing innovation that makes it dramatically easier for people to apply and wear false eyelashes.

Hunter founded LashLiner Inc in 2018 to bring her patent-pending invention to market, alongside co-founder Bob Kitzberger, and in June 2019 launched Tori Belle Cosmetics.

As I understand it Tori Belle Cosmetics is a LashLiner subsidiary, through which the MLM side of the business operates.

Tori Belle is sold exclusively through tens of thousands of independent affiliates and influencers, across many channels including social media, online advertising, and brick-and-mortar venues.

A Comparative Balance Sheet filed on August 15th reveals the following liability breakdown, as of the end of FY 2021:

$3.5 million in accounts payable

$281,647 in credit card debt

$1.44 million marked as “other current liability”

Worth also noting is $3.1 million in accounts receivable, and $5.4 million in held product inventory.

In 2020, LashLiner recorded $5.5 million in net income. In 2021 it recorded a $1.2 million dollar loss.

LashLiner’s sales took a pretty big hit, dropping from $59.6 million to $22 million. Shortcomings that are obvious in the numbers are

the cost of goods sold dropping only 48%, while net sales of products dropped 64%

payroll wages, taxes and benefits remaining at around $5 million year on year

“other income and expenses” rising from $31,665 to $715,436

As part of their bankruptcy filing, LashLiner included a “six-month cash projection and budget”.

The filing details

a projected increase in sales due to seasons and an “Aug/Sep major new product launch” of a “workout line” they’re calling TB Brave

no change to free shipping policy due to move to a third-party logistics warehouse and

implementing “remote work for remaining workers”

In a more immediate effort to keep the company together, on August 17th LashLiner filed an ex parte application to Pay Wages and Salaries and Payroll Taxes.

LashLiner argued that not paying its staff would “irreparably impair the Employees’ morale, dedication, confidence, and cooperation.”

At this early stage, the Debtor simply cannot risk the substantial damage to its business that would inevitably attend any decline in its Employees’ morale attributable to the Debtor’s failure to pay wages, salaries, and other similar items.

Absent an order granting the relief requested in this Mot

🤖 Quick Answer

What is Tori Belle Cosmetics and why did it file for bankruptcy?
Tori Belle Cosmetics, operated by parent company LashLiner, filed for Chapter 11 bankruptcy in August 2021 with $5.2 million in liabilities. The cosmetics MLM company was founded in 2018 by Laura Hunter and Bob Kitzberger, who developed magnetic eyeliner technology. Both co-founders maintained equal 50/50 equity stakes in the organization.

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