Hailey Bieber Eyes $1B Sale of Beauty Line Rhode, Amid Marital Struggles and Health Concerns for Justin
Hailey Bieber is reportedly considering sale of $1 billion skincare brand Rhode. The brand debuted in June 2022 and has made its way into the beauty world with a line of skincare products and select makeup items including blushes and peptide lip treatments.
According to WWD, a source revealed that 28-year-old Hailey brought in J.P. Morgan and global investment bank Moelis to assist in process of seeking a potential sale of Rhode with a $1 billion valuation. Sales are estimated to have breached the $200 million mark for Rhode since its launch. It won't be easy to find an agreement -- especially since the brand only sells online, but discussions with retailers about future partnerships took place too.
As one insider put it, "The market is just too uncertain to write that big of a check." And although the brand's success hasn't gone unnoticed, some prospective buyers are put off by what they see. Rhode is not only an online-only brand but also experiencing this strong association with Hailey, making it a worrisome sell in today's beauty landscape, explained one insider.
Current Market Challenges
Rhode is not the only label having trouble landing big partnerships, Fellow beauty labels such as Selena Gomez's Rare Beauty, Makeup by Mario and Merit by Katherine Power have also experienced setbacks. One industry expert cited the increasingly sluggish M&A (mergers and acquisitions) market and continued economic uncertainty.
"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," one source said.
A second insider said that the market is shrinking for a brand like Rhode because of its dependence on its founder and less widespread distribution.
Even with those potential difficulties, Hailey is reportedly weighing up a deal with multi-national cosmetic megastore Sephora. Still, there are some industry insiders who are not convinced that such a relationship would be as lucrative as it sounds.
Much of Rhode's growth has come from Hailey who often uses her social media to promote products including Glazing Milk, Barrier Butter, and Peptide Glazing Fluid. But at least one industry expert warns that putting too much weight on social media could be a long-term mistake.
According to the source, "Brands are being told to dial that back. Don't get hooked on virality, because you can't anniversary those sales numbers."
Personal Problems
While their businesses have seemingly taken off, both Hailey and her husband Justin Bieber have had to deal with speculation regarding their personal lives. Fans were worried about the health of the singer, who has previously battled with anger problems and mental health issues. His gaunt and hollow-eyed appearance during a livestream recently, however, raised alarm bells among followers.
Now, sources close to the couple claimed they are trying to work things out but have kept some distance, and insiders also suggested counseling due to their strained relationship, as reported by the Daily Mail.
"Hailey craves for the Justin she fell in love with," one insider shared. "The way their relationship is now, they both know it could be better." Despite these challenges, the source added, "Hailey is his rock."
The "Peaches" singer's health has also become a point worry. A few months ago, Justin took to Instagram to talk about feelings of self-doubt and being "inauthentic," leading fans to wonder if something was wrong. He also revealed to having "anger issues" and said he sometimes feels like a "fake". Although these posts, a rep explained Justin isn't doing drugs and that he is in one of the best phases in his life.
