“We love businesses that are able to establish long-term and recurring relationships with their customers.”
That was one reason why Encore Consumer Capital elected to make a substantial investment in the indie beauty brand Butter London, according to Kevin Murphy, a managing director at Encore.
The other reason is that Butter London is a “superstrong brand” backed by an equally “strong team built for a substantially larger business,” he said.
Encore, which focuses on consumer products, isn’t new to the beauty category. The company has a stake in natural skin-care firm MyChelle Dermaceuticals, and recently sold its position in prestige color cosmetics brand Tarte to Kosé.
Neither Encore nor Butter London are disclosing the terms of their agreement or the investment amount.
Butter London, founded in 2005 by Sasha Muir, is positioned as an entry brand to the prestige space. Average price points are $15 for nail colors and $20 for items in its color cosmetics line, according to Leslie Freytag, Butter London’s president and chief executive officer.
Freytag said the company has been looking for a financial partner to help with capitalization of the business so the company can grow. It has 80 employees.
Founded as a nail lacquer brand, with influences from rock ’n’ roll, Great Britain — where Muir is from — and fashion, the company last year launched its color cosmetics line.
According to Freytag, the investment from Encore will help the beauty firm increase its product development so it can build out a full range of color cosmetics, increase its sales and marketing initiatives and add to its field sales team.
“Part of the investment will help us to really expand our Web presence on our Web site and in social media,” the ceo said, noting that the additional resources will help it strengthen the relationships with its current consumers and “also to make new friends.”
Although the company sells globally on e-tail platforms in the U.S., Canada, the U.K., Taiwan and Australia, it has primarily a wholesale-focused business model. It has a presence in specialty stores such as Ulta beauty and select Nordstrom and Dillard’s locations, and one freestanding nail salon location at the Seattle-Tacoma International Airport. The company is based in Seattle.
Freytag isn’t ruling out the possibility of additional freestanding sites — “We are looking at all opportunities,” she said — although the priority seems to be entrenching itself further in the color cosmetics category.
According to Encore’s Murphy, quality opportunities in the beauty space have been “tough to come by.” He said his firm has been aware of Butter London since around 2006 or 2007, but only in the last six months was there a sense that an investment opportunity might be possible.
While holding periods for its investments average five years, Murphy said that isn’t a fixed rule and there is some flexibility to “entertain an exit well before that or after that [time period].”
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)