Hailey Bieber is reportedly considering selling her skincare brand Rhode for $1 billion – after launching the company nearly three years earlier in June 2022.
The model, 28 – who has been embroiled in fan concern over her marriage to singer Justin Bieber – offers both skincare and limited makeup products through the line, such as blush and peptide lip treatment.
The star has hired both J.P. Morgan and global investment bank Moelis to assist her in finding potential deal options at $1 billion in value, sources told WWD this week.
Since its launch, Rhode sales have been estimated to be around $200 million. But when it comes to a buyer, a sale might be difficult due to the brand being only online – despite talks of the company partnering with a retailer in the future.
One insider stated, ‘They’re too risk-averse, particularly in this environment. The market is just too uncertain to write that big of a check.’
According to the outlet, some buyers are wary of acquiring a brand that is associated with one celebrity and only one retailer.
Hailey Bieber, 28, is reportedly considering selling her skincare brand Rhode for $1 billion – after launching the company nearly three years earlier in June 2022; seen in March in L.A.
The star has hired both J.P. Morgan and global investment bank Moelis to assist her in finding potential deal options at $1 billion in value, sources told WWD this week
Other similar brands have also not made any major deals such as Selena Gomez’s Rare Beauty, Makeup by Mario and Merit by Katherine Power.
An industry source told WWD that it was due to a trailing M&A market as well as additional economic pressures.
‘Nobody paid $1 billion for Rare Beauty, nobody paid $1 billion for Makeup by Mario. Why would they pay that for Rhode? It doesn’t even have distribution.’
Another insider explained that companies such as Rhode offer ‘too much risk’ for potential buyers due to being ‘too young.’
They stated, ‘The brand has approached the scale where the universe of potential buyers is getting smaller and smaller.
‘And [Makeup by Mario, Rare Beauty and Rhode] are too young, too big, too dependent on their founders – there’s too much risk. The buyers that are relevant are exactly the buyers that wouldn’t touch this.’
It has been speculated that Hailey could possibly be partnering with global retailer Sephora.
However, one source stated, ‘It’s not just shipping products to Sephora or flying Hailey around. People think getting into Sephora is a big win, but can they support that?’
Another insider explained that companies such as Rhode offer ‘too much risk’ for potential buyers due to being ‘too young’
Hailey often takes to Instagram to promote products from the skincare brand which include Glazing Milk ($32), Barrier Butter ($38) and Peptide Glazing Fluid ($32)
Another insider told WWD that social media can be seen as a con rather than a pro in the long run for a business.
‘Brands are being told to dial that back. Don’t get hooked on virality, because you can’t anniversary those sales numbers. That’s not viewed favorably. It drives traffic, sure, but you don’t want massive spikes.’
Hailey often takes to Instagram to promote products from the skincare brand which include Glazing Milk ($32), Barrier Butter ($38) and Peptide Glazing Fluid ($32).
Limited makeup products are also available to consumers including the Pocket Blush ($24), Peptide Lip Shape ($24) and Peptide Lip Tint ($18).
The mother-of-one has previously opened up about her company and told PopSugar last year, ‘I still have some fears and hesitations of “I hope this or that doesn’t happen.”‘
She continued, ‘I’m opening up this part of my world to everybody. Rhode is coming straight from my mind to their hands.
‘I’m the majority owner of this brand, I’m the one who put the most money into this brand, so my biggest hope is that people love it for what it is and for the quality of the product.’
While Hailey is possibly ready to take new steps with the sale of Rhode, her husband Justin has also been teasing a new venture in the fashion industry.
She continued, ‘I’m opening up this part of my world to everybody. Rhode is coming straight from my mind to their hands’
While Hailey is possibly ready to take new steps with the sale of Rhode, her husband Justin has also been teasing a new venture in the fashion industry
Earlier this week, the Peaches hitmaker took to social media to share snaps of a hoodie that was placed inside a clear package, as well as shoes and phone cases.
He hinted that the products are under the new label SKYLRK, and a website has already been created for the brand – although it currently only allows fans to sign up for future updates.
Back in 2019, the music artist previously launched the streetwear brand called Drew House.
The couple were also recently involved in ‘unfollowing’ drama when the beauty seemingly unfollowed her husband on Instagram – which sent some fans into a frenzy.
However, the model later broke her silence over the situation to point out that she was still following the singer and that it had simply been a ‘glitch.’
On TikTok, the mother-of-one explained, ‘It’s a glitch. Didn’t unfollow him. Hope this helps!’
Amid speculation of marital strife between the pair, Hailey and Justin were recently seen together during a casual outing in L.A. on Saturday. The two stars were spotted strolling arm-in-arm as they grabbed a bite to eat.
It also comes as both Hailey and Justin have been embroiled in rumors of marital woes as well as fan concern over the singer’s health
Bieber has aired out his emotional struggles and ‘anger issues’ on social media in recent weeks, and fueled concern once again during a livestream late last month where he looked hollow-eyed and gaunt
But earlier this week, a source told DailyMail.com that friends of the two stars have suggested that the couple get ‘counseling.’
The insider stated that Hailey also ‘craves for the Justin she fell in love with.
‘The way their relationship is now, they both know it could be better. It is not as bad as some are saying but it is strained. Friends have suggested counseling.’
The source added that the two stars are still ‘trying to figure it all out’ after marrying seven years earlier and said the singer is ‘leaning on his faith to make that happen for the better.
‘Justin and Hailey are very much aware that if they were to split it would likely lead to a complete tailspin for Justin that he could struggle to recover from. Hailey is his rock.’
Last month, Justin was accused of ‘disrespecting’ his wife after he uploaded a photo of a child flashing their middle fingers along with the text: ‘me behind my girlfirend after she make me mad.’
The couple were also recently involved in ‘unfollowing’ drama when the beauty seemingly unfollowed her husband on Instagram – which sent some fans into a frenzy
But earlier this week, a source told DailyMail.com that friends of the two stars have suggested that the couple get ‘counseling’
The performer soon broke his silence afterwards by sharing a sweet snap of the model as they sat at a table outdoors.
The Baby hitmaker has also gotten candid with his followers by opening up about his emotional struggles on social media.
On Instagram, he uploaded a video of a jam session with other musician pals and wrote, ‘I think I hate myself sometimes when I feel myself start to become inauthentic.
‘Then I remember we’re all being made to think we’re not enough but I still hate when I change myself to please people.’
It came shortly after the star admitted to having ‘anger issues’ in another online post.
He further fueled worry among fans when he posted about feeling ‘like a fraud’ and ‘unworthy’ in a message shared to his Instagram stories.
Last year in August, Hailey and Justin welcomed their son Jack Blues to the world – and they have given rare glimpses of the little one on social media without showing his face for privacy
Justin fueled worry among fans once again when he shared photos of himself smoking from what appeared to be a bong.
The singer had also shared a video to social media of himself smoking what appeared to be a joint.
But in February, a rep for Bieber told TMZ that the singer was not taking drugs and added that he is currently ‘in one of the best places in his life.’
Last year in August, Hailey and Justin welcomed their son Jack Blues to the world – and they have given rare glimpses of the little one on social media without showing his face for privacy.
