A handful of the company’s employees took to TikTok, using the hashtag “#justiceformorpheretailemployees."
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| Morphe makeup display at the Miracle Mile Shops at Planet Hollywood Las Vegas Resort & Casino on June 16, 2018.David Becker / Getty Images for Morphe file |
Morphe Cosmetics, a makeup company formerly associated with YouTube beauty culture, said on Thursday that it was closing all of its U.S. retail locations, shocking staff members, infuriating consumers, and raising concerns about the brand's future among some industry observers.
The announcement comes after a few employees of the company used the hashtag "#justiceformorpheretailemployees" on TikTok during the holidays to criticize the company's lack of openness during the layoffs. Supportive comments from viewers swiftly followed, denouncing the company for allegedly leaving its staff in the dark while stores ran out of stock.
Given that the company apparently went through years of financial and legal difficulties, as well as reputational damage, some beauty experts claimed that the news was not unexpected. The way the company handled its workers during the shutdown may have further damaged the brand's standing with Generation Z customers, who have previously shown a dislike for Morphe.
Hana Ben-Shabat, head of the research business Gen Z Planet and author of "Gen Z 360: Preparing for the Inevitable Change in Culture, Work, and Commerce," claimed that Gen Z consumers make decisions based on their principles. These principles include supporting businesses that prioritize diversity, take steps to lessen their impact on the environment, and treat their employees fairly.
The brand, which was established in 2008 and markets itself as "Makeup for the Creators," has been embroiled in controversy for many years.
The Forma Brands-owned company Morphe has been linked to some of its collaborators' scandals, such as those involving Jeffree Star's alleged racism and James Charles' alleged sending of sexual messages to minors.
In spite of numerous attempts for comment, a Forma Brands spokeswoman remained silent.
The company is "forever grateful to our shop staff for their enthusiasm, talent and dedication throughout the years," according to a tweet from Morphe.
According to Ben-Shabat, young consumers, on whom Morphe based its brand, have turned away from mega-influencers.
A number of complaints concerning unpaid rent on one of Morphe's retail locations, deceptive advertising, and a lack of assistance for its subsidiaries were also brought against the company in the previous year. According to Wendy Musell, an employment civil rights attorney and founding partner of the Law Offices of Wendy Musell, the way the company handled its shutdown could expose it to additional legal issues.
The brand has recently seen hostility that has spread to other social media sites, including Morphe's Instagram page.
One person commented on the company's most recent Instagram photo from December 1: "It's a shame this is one of my favorite makeup businesses and to see a tank like this is insane and the fact that you guys are treating your shop employees so horribly is what's weird to me."
People on Twitter called the store closings as devastating after the firm disabled replies to its tweet informing users of the news.
One user commented, "I worked here for a year and a half, and I'm really heartbroken."
Morphe employees sounded alarm for weeks:
Several employees who worked in retail for Morphe told NBC News that they were given a day's notice before losing their employment, and other employees found it startling that the company had let them go so quickly.
After Black Friday, three employees who talked with NBC News said their stores soon ran out of stock due to deeply discounted deals. After Morphe stopped delivering product supplies to their locations, employees claimed they started to worry. According to a Morphe employee from Oregon, the firm informed stores that the delays in restocking were caused by shipping problems.
In a Zoom call on Tuesday, the now-former employees claimed they were warned of the closures and that any remaining outlets would close by Saturday.
More than 7.5 million people have watched TikToks with the hashtag #justiceformorpheretailemployees, even though several popular videos regarding the store closings have been taken down.
In order to protect her severance money, Kim, a Morphe employee who requested that her full name not be used, was told to remove her TikToks about the store closings.
Kim claimed that the reason she was so devoted to the company was that it valued and supported all cosmetic artists. She described her coworkers as "the sweetest, most encouraging, and creative people anyone has ever encountered."
Kim described working at Morphe as "your dream job," not simply a job. It's kind of like your second life, or first for some individuals.
Kim claimed that she was informed that managers would receive three weeks of severance pay while Morphe's retail staff, known as beauty artists, would receive only two weeks. Employees of Morphe who contacted with NBC News on Friday claimed they hadn't yet gotten their severance packages.
Workers should be aware of their rights under federal and state law, according to Musell. Using a one-day notice for mass layoffs, according to her, could violate California labor rules and the U.S. Worker Adjustment and Retraining Notification (WARN) Act, where Morphe operated 11 locations.
According to Musell, the benefit of severance packages to the employer "is that the employee must renounce all of their legal rights in order to "purchase the peace" However, those employees might want to investigate if the WARN Act has been broken and whether they are, at the very least, entitled to 60 days ", according to Musell.
The 'end of an era' for Morphe:
Between 2016 and 2019, Morphe rose to fame during the height of YouTube's beauty trend. It was at the vanguard of a maximalist makeup trend that is no longer popular with consumers, especially Gen Z audiences, who have switched to a more minimalist approach to skin care and beauty.
When speaking to the innovative maximal looks Morphe is known for, Ben-Shabat noted, "They were not fast to react to that since they were developing on that creativity."
According to reports, Morphe's sales have decreased over the past two years. The brand's sales decreased from $500 million in 2020 to $295 million in 2021, according to Business of Fashion. Forma Brands, the parent business, reportedly thought about declaring Chapter 11 bankruptcy in October. According to Ben-Shabat, the store closings are an indication that sales are still sputtering.
Many consumer brands that began on the internet now recognize the value of physical locations and are opening them, the speaker added. Therefore, Morphe is closing locations at a time when many DTC (direct-to-consumer) firms are kind of recognizing that maybe the DTC model is no longer what it once was and there is value in having stores.
Kim and other staff at Morphe are left to determine their future moves as the company fights to remain relevant. While some are still in shock at the unexpected job loss, others are attempting to find new employment.
Kim claimed that rather than wallowing in the loss of her ideal position, she is choosing to reflect on her accomplishments at Morphe.
That is how I see it, and we are the end of an era, Kim remarked. "I'm thankful that I got myself in this situation and thankful that I can get myself out of it."
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