The beauty industry has faced financial distress in the last three years, with several product manufacturers filing for bankruptcy to reorganize their businesses.

Companies have often cited similar reasons for needing to file for bankruptcy, including rising labor and product costs, high debt obligations, fierce competition, and changing consumers’ attitudes toward spending.

In some cases, litigation costs, including attorneys’ fees or paying judgments, bury companies in debt.

Related: Unusual bar and restaurant chain files Chapter 7 bankruptcy

Some of the recent bankruptcy filings have included huge distressed companies like Avon in August 2024 and Revlon in June 2022.

Popular beauty brand Essations filed for Chapter 11 bankruptcy to reorganize its business and restructure its debts on July 18, 2025.

Beauty brands that filed for bankruptcy:

• Essations in July 2025.
• Avon in August 2024.
• Revlon in June 2022.

The Chicago Heights, Ill.-based personal products manufacturer and distributor, which was established in 1981, filed its petition, listing $100,000 to $500,000 in assets and $1 million to $10 million in debts.

Essation’s products include a variety of hair care brands, including Essations Collection, Naked by Essations, Naked X by Essations, Textures by Naked, and Tea Tree Collection.

Essations’ hair care products

• Essations Collection.
• Naked by Essations.
• Naked X by Essations.
• Textures by Naked.
• Tea Tree Collection.

Its hair care products include shampoos, conditioners, stylers, finishers, travel, and skin care and are available at over 170 hair care product dealers nationwide, according to its website.

Dana Classic Fragrances has filed for bankruptcy.

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Dana Classic Fragrances files for Chapter 11 bankruptcy

Finally, the owner of Dana Classic Fragrances, which makes iconic perfume and cologne brands like Chantilly, English Leather, British Sterling, Voodoo, and Tabu, filed for Chapter 11 protection, seeking a sale of its assets in bankruptcy.

The perfume company owner, IMG Holdings Inc., filed its petition on Aug. 11 in the U.S. Bankruptcy Court for the District of Delaware, listing over $64 million in secured debt and $500,000 of unsecured trade debt.

Related: Popular beer brand and brewery files for Chapter 11 bankruptcy

The debtor had about $4 million in gross sales in 2024 and $3.5 million in gross sales in 2023, according to a declaration from CEO Larry Thompson.

IMG will seek up to $500,000 in debtor-in-possession financing to finance its bankruptcy case from its proposed buyer, Fragrance Xtreme, which will credit bid the DIP loan in its purchase of the company.

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Fragrance Xtreme has proposed an asset purchase agreement in the bankruptcy case to purchase the company for $3 million, with proceeds distributed to secured creditors, including Patriarch Partners, Ark II, and Phoenix Recovery, and a litigation judgment to Disney Enterprises.

The debtor had been negotiating with its largest creditors and marketing the business and intellectual property for sale for several years, according to the declaration.

The company was not able to secure a sale of the company due to low purchase offers, the company’s high debt obligations, and litigation.

Fragrance Xtreme seeks to purchase IMG Holdings

The debtor determined that the Fragrance Xtreme offer was the highest and best value that could be secured in an acquisition.

The debtor’s roots date back to 1932 with the launch of its first perfume, Tabu, in Paris by French perfumer Jean Carles.

The company continued releasing other classic perfumes like 20 Carats and Bolero in 1933, Canoe and Emir in 1935, and Platine in 1938.

The company’s main office was transferred to the U.S. in 1940 during World War II, and founder Javier Sierra would release more classic perfumes with Voodoo in 1951 and Ambush in 1955.

Dana Classic Fragrances expanded in the 1990s

In the 1990s, the company acquired licenses to iconic classic perfumes, including Chantilly, Love’s Baby Soft, English Leather, British Sterling, Monsieur Musk, and Navy for Women.

Dana Classic Fragrances’ top brands:

• Tabu (1932).
• 20 Carats (1933).
• Bolero (1933).
• Canoe (1935).
• Emir (1935).
• Platine (1938).
• Voodoo (1951).
• Ambush (1955).
• Chantilly(1990s).
• Love’s Baby Soft (1990s).
• English Leather (1990s).
• British Leather(1990s).
• Monsieur Musk (1990s).
• Navy for Women (1990s).

The company’s oils and solutions are blended in the U.S, while its glass bottles, caps, and pumps are manufactured in China.

The debtor sells its products through its website, danaclassics.com, Shopify, as well as retailers such as Walmart and Amazon.

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