Hailey Bieber eager to sell skincare brand for $1 billion amid marital woes

Hailey Bieber has recently expressed her hope to sell her skincare brand Rhode for one billion dollars.

A source spilled to WWD that the model reportedly hired J.P. Morgan and global investment bank Moelis to assist her in finding potential deal options at $1 billion in value.

An insider revealed that after Rhode’s launch in June 2022, the sales had been estimated to be around $200 million.

However, when it comes to a buyer, a sale might be difficult due to the brand being only online.

A source noted that the companies “are too risk-averse, particularly in this environment. The market is just too uncertain to write that big of a check”.

The insider opened up that some buyers was wary of getting a brand that’s associated with one celebrity and only one retailer.

An industry source told WWD that it was due to a irregular 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,” explained an insider.

The source further said, “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,” remarked an insider.

The source added, “The buyers that are relevant are exactly the buyers that wouldn't touch this.”

Meanwhile, an insider revealed that Hailey might collaborate with global retailer, Sephora.

“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?” said an insider.