Biotechnology company Amyris filed for Chapter 11 bankruptcy protection this week and announced plans to exit the celebrity beauty business. This comes after a series of missteps as Amyris attempted to transition from ingredients supplier to beauty brand incubator.
Founded in 2003, Amyris found early success developing renewable ingredients like its hero product squalane. But in recent years, the company bet big on celebrity-driven beauty brands. It acquired or launched labels like Rose Inc., JVN, Costa Brazil, Stripes and Onda Beauty.
The celebrity brand pivot proved unsuccessful despite ambitions to build a clean beauty conglomerate. Amyris struggled to scale the new brands operationally and financially. Lower than expected brand revenue and declining ingredient sales put pressure on the business.
After the departure of CEO John Melo in June, Amyris began streamlining its portfolio. It sold its squalane business to Givaudan for $350 million and laid off hundreds of employees.
Now Amyris plans to sell off remaining consumer brands as it exits Chapter 11. The company aims to return focus to its core ingredients business which originally made Amyris successful.
The bankruptcy filing caps a tumultuous year for Amyris. Overexpansion into celebrity beauty and neglect of its science-based roots caused the biotech firm to lose sight of its competitive advantage. As it restructures, Amyris is set to course correct.