Forma Brands LLC, the parent company of makeup retailer Morphe LLC, filed Jan. 12 for bankruptcy in Delaware with plans for lenders including Jefferies Finance LLC and Cerberus Capital Management to take it over.

The Pacoima, California-based company listed assets and liabilities of at least $500 million each in court papers. The Chapter 11 filing allows Forma to keep operating while it seeks court approval of a restructuring plan. However, the company has already said it is closing all of Morphe’s U.S. stores.

The investor group slated to take ownership of Forma has agreed to provide $33 million of fresh financing in bankruptcy, according to a statement. The proposed acquisition sets a floor for further offers, which a federal judge must approve. It includes Forma’s wholesale operations, online platforms and international Morphe retail stores.

The bankruptcy caps a tumultuous two and a half years for Morphe that failed to see revenues grow in spite of marketing deals with YouTubers and influencers.

Morphe’s marketing strategy relied heavily on online personalities including James Charles, Jaclyn Hill and Jeffree Star — YouTube sensations who boast tens of millions of followers and whose collaborations with the brand regularly sold out.

Influencers are now among the company’s largest unsecured creditors. Hill and Star holding $2 million and $1.4 million in claims respectively, court papers show.

The main case is FB Debt Financing Guarantor LLC, 23-10025, U.S. Bankruptcy Court for the District of Delaware.

Morphe ranks No. 312 in the Top 1000. The Top 1000 is Digital Commerce 360’s ranking of the largest North American online retailers by web sales.

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