31-year-old global cosmetics brand files Chapter 11 bankruptcy

The cosmetics industry has not escaped the economic challenges that the rest of the retail sector has faced over the last two years.

Some major cosmetics brands have fallen victim to financial distress and were forced to file for bankruptcy to continue operating.

Cosmetics companies face fierce competition

Fierce competition is one of the greatest challenges for the sector, consisting of 5,085 businesses in the cosmetics and beauty products manufacturing industry, generating about $39.3 billion in revenue in 2025, according to research firm IBISWorld.

Each of these businesses also faces the issues all retailers deal with, including rising costs of labor and products driven by inflation, rising interest rates on their debts, and increased tariff costs.

Iconic cosmetics company Avon filed for bankruptcy

Iconic cosmetics retailer Avon Products in August 2024 filed for Chapter 11 bankruptcy as it was buried in $1 billion of debt and faced hundreds of lawsuits related to asbestos exposure from its talc products.

Avon reached an agreement with its parent company Natura & Co. on the sale of its non-U.S. operations in bankruptcy, which closed in December 2024.

Subsequently, beauty technology company Cutera, a leading provider of aesthetic and dermatology solutions, on March 5, 2025, filed a prepackaged Chapter 11 bankruptcy seeking to reduce its debt by $400 million and raise $65 million in debtor-in-possession financing from its prepetition lenders.

Cutera emerges from bankruptcy

Cutera successfully reorganized, completed its financial restructuring, and emerged from bankruptcy on May 1, 2025, reducing its debt by 90%.

"Today marks a significant milestone for Cutera, as we strengthen the foundation we’ve built for over 25 years, so that we can serve the medical aesthetics industry in even greater ways in the years to come,” said Cutera CEO Taylor Harris.

Valley of the Sun Cosmetics files for bankruptcy protection

And now, natural skin care, hair care, and beauty products manufacturer Valley of the Sun Cosmetics LLC has filed for Chapter 11 bankruptcy protection to reorganize its business and continue operating.

The Gardena, Calif.-based cosmetics and personal care products company filed its petition on Nov. 18 in the U.S. Bankruptcy Court for the Central District of California, listing up to $100,000 in assets and $1 million to $10 million in debts, according to Bankruptcy Observer.

The company did not reveal a reason for filing for bankruptcy in its documents.

Valley of the Sun Cosmetics, which was established in 1994, manufactures "All American Made" beauty brands manufactured with pure natural ingredients in its California labs and available in various countries worldwide, according to its website.

The cosmetics company's brands include Hollywood Style Herbal Formulas, Dr's Formula Beverly Hills, Bee Organic, Spanish Garden, Moochi Smoochi, Fresh & Fruity, Romeo Juliet, and Millionaire Beverly Hills.

Valley of the Sun Cosmetics products

• Hollywood Style Herbal Formulas
• Dr's Formula Beverly Hills
• Bee Organic, Spanish Garden
• Moochi Smoochi
• Fresh & Fruity
• Romeo Juliet
• Millionaire Beverly Hills

The company's founders, Patrick and Elizabeth Sura, began working as chemists in well-known multinational companies in 1971 in Los Angeles, and after getting married, started their own small cosmetics lab known as Biometrics Int'l, providing private labeling and contract manufacturing.

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The company became Valley of the Sun Cosmetics in 1994.

“Our products are manufactured with the highest quality ingredients available in the industry; all carefully formulated by our experienced chemists and individually batched by our quality control system to make sure they are in impeccable condition before leaving our facilities,” the company said on its website.

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