Some may remember the days when new makeup launches would sell out within minutes of their release. It was unfathomable for any YouTube beauty tutorial-obsessed girl to forget about the seasonally released Urban Decay Naked palettes, the staple Benefit Hoola Bronzer, or the MAC Cosmetics lipstick of the moment.

The girls who woke up at the crack of dawn every day just to do a perfectly blended smoky eye, paint on block-shaped eyebrows, contour their face, and figure out what nude lipstick to use before heading to school know just how precious those days were.

As someone who grew up during the height of the beauty YouTube boom, it’s hard not to feel nostalgic for a time when makeup launches felt like cultural events.

For years, the beauty industry was a booming business, fueled by makeup-obsessed consumers constantly on the hunt for the next must-have product, innovative launch, or celebrity-backed line. But that momentum has slowly faded.

Today, amid an uncertain economy, consumers have shifted their priorities, becoming far more conscious of their spending habits. At the same time, the market has grown oversaturated, making it increasingly difficult for once-beloved brands to maintain the success they once enjoyed.

Unfortunately for the nostalgic makeup splurgers, this shift has forced many iconic brands to scramble for new ways to stay relevant or risk closure altogether. Now, two once-popular beauty brands have met that fate.

Cover FX and Mally Beauty permanently close

Cover FX and Mally Beauty revealed through Instagram posts that they will permanently shut down their beauty labels on January 22.

Both brands are owned by AS Beauty Group, a New York-based company founded in 2019 by the original E.l.f. Cosmetics founders Alan and Joey Shamah, along with Victor and Ralph Azrak. The group’s brand portfolio also includes Laura Geller, Bliss, and Julep Beauty.

“Thank you for more than 20 years of love, loyalty, and beauty without compromise,” said Cover FX in its Instagram post.

“We’re so thankful for the incredible journey we’ve shared with our Mally Beauty community. Together we’ve built a brand that celebrated confidence, joy, and beauty,” said Mally Beauty in its Instagram post.

Both labels cited new challenges in the beauty industry, including tariffs and a shifting global market, as the reasons for their closures.

While supplies last, customers can still shop Cover FX products on its website and Amazon, and Mally Beauty products on QVC’s website and Amazon.

“This allows us to concentrate our resources, investment, and talent on the brands that are demonstrating sustained growth and long-term potential,” said an AS Beauty spokesperson in a statement to Business of Fashion, adding that the company’s remaining brands are showing “strong performance.”

Cover FX and Mally Beauty close permanently in 2026.

Shutterstock

The history of Cover FX and Mally Beauty

Founded in 1999, Cover FX was launched by MAC Cosmetics co-founder and chemist Victor Casale and medical skin care specialist Lee Graff. The brand was acquired by L Catterton in 2011 before being purchased by AS Beauty in 2022 for an undisclosed amount.

Mally Beauty was founded by celebrity makeup artist Mally Roncal, who has worked with stars such as Beyoncé, Jennifer Lopez, and Angelina Jolie. The brand launched on QVC in 2005 and sold out in just 36 minutes, according to Roncal’s website.

More Retail Business News:

• Sephora partners with global beauty giant
• 11-year-old cosmetics brand puts business up for sale amid slump
• Target bets on a strategy that hasn’t fixed declining sales

However, the hype gradually faded.

Mally Beauty filed for Chapter 11 bankruptcy in 2015 and was acquired by Beauty Vision for $10 million later that year, before being purchased by AS Beauty in 2021 for an undisclosed amount, according to court filings and multiple industry reports.

The changing business of the beauty industry

The global beauty industry was valued at approximately $450 billion in 2025, with annual growth of 5% projected through 2030, according to McKinsey & Company’s State of Beauty 2025 Report.

In the U.S., the prestige beauty market rose 2% to $16 billion in the first half of 2025, while sales at mass merchants increased 4% to $34.6 billion, according to Circana.

Despite this growth, consumer preferences continue to evolve, making it increasingly crucial for brands to stay ahead of trends to avoid being outpaced by the competition.

“A strong uptick in beauty spend, plus higher inflation and greater access to information, has pushed shoppers to pay closer attention to whether products deliver,” said McKinsey & Company industry analysts. “Consumers are selectively splurging across not only consumer discretionary categories but also beauty subcategories.”

While the beauty market has been consistently resilient, makeup sales were weak during the first quarter of 2020, prompting widespread store closures, according to McKinsey & Company’s 2020 COVID-19 Beauty Report. This downturn was driven by several pandemic-related shifts that permanently reshaped the industry.

“Even before the pandemic, brands were under pressure to overhaul their product-innovation pipelines,” said McKinsey & Company industry analysts. “Now, the need for speed is even greater.”

The dominance of Sephora, ULTA Beauty, and Amazon in beauty retail has also made brands more dependent on department stores, drugstores, or direct-to-consumer selling. However, this has intensified competition, as brands must now battle rivals within the same retail spaces, according to Business of Fashion.

Beauty labels struggle to survive

Cover FX and Mally Beauty are far from alone. Many beauty brands are seeking new funding sources to stay afloat, while others have closed entirely in recent years after sales declines became unsustainable.

Beauty brands that have closed

• Pat McGrath Labs: It put its assets up for auction in late December 2025 and filed for Chapter 11 bankruptcy in 2026, according to Hilco Global and Business of Fashion.
• Flower Beauty: The brand co-founded by actress Drew Barrymore closed in September 2025, reported Global Cosmetics News.
• Beautycounter: Business shut down in April 2024 after entering administration and later rebranded to Counter in 2025, noted Beauty Independent.

Related: Walmart tries to bring health and wellness to more Americans