Kylie Jenner Accused of Scamming for Selling Tanking Cosmetics Company
The ‘Keeping Up with the Kardashians’ star allegedly faked reports about Kylie Cosmetics’ profits before selling it to Coty, Inc., which now owns 51% stake in the company.
- Mar 10, 2020
AceShowbiz – Kylie Jenner‘s cosmetics empire isn’t as successful as it’s claimed, according to an online report. The 22-year-old, who recently sold majority of Kylie Cosmetics’ stake to Coty, Inc., has been accused of scamming for selling the tanking company.
The makeup mogul and her mother/manager Kris Jenner allegedly faked reports about the company’s sales profits, including the one published on Forbes, to make it “look good” before selling the company. Allegedly not aware of it, Coty has now suffered losses on its Q1 financial report, but refuses to come clean about it.
In March 2019, Forbes valued Kylie Cosmetics, which was formerly known as Kylie Lip Kits, at $900 million. In November of the same year, Coty bought a 51% controlling stake in the company for $600 million, with Kylie still holding the remaining 49% of its stake.
Fortunately for Coty, the purchase has reportedly not been finalized and it has until March 31 to back out of the deal.
While the news of Kylie Cosmetics’ loss has not been confirmed, people have weighed in on it, with some claiming that they’re not shocked because the company’s products were never that popular. “I believe it. I don’t know anyone with Kylie products,” one commented on the report. “All the popular beauty gurus don’t use her stuff either, and they have a lot of influence. So where are her customers coming from?”
A second Internet user agreed with the previous commenter’s statement, writing, “The most I’ve seen someone buy was lip gloss. But the pallets and foundation etc.. collect dust, and them shits be right in front of the door at ulta,” Another added, “I heard the business was never doing well and she isn’t really a billionaire. She never opened her books to Forbes. That’s why she sold the company”
“Yeah, I never believed the billionaire flex. Rihanna isn’t even a billionaire, and Fenty was explosive,” someone compared Kylie’s cosmetics company to Rihanna’s Fenty line. “There’s no way that Kylie surpassed her when her makeup didn’t have the same cultural impact. It doesn’t make sense.”
Some others, however, believe that Coty knew the numbers and didn’t rely on Forbes’ article before purchasing the company. “Coty is a multi-billion dollar brand. They didn’t purchase the brand based on a Forbes article. Best believe they looked at the actual numbers,” one explained.
Another argued, “If it’s tanking, Kyle didn’t scam them. I’ve been involved in a company sale before and the company buying does tremendous due diligence. They hire lawyers to look at everything. Every number. Every data.”
“Stevie Wonder could see the company reached its peak and Kylie knew it too. It’s smart business on her part. Not her fault they were stupid enough to buy it,” someone defended Kylie. Another person wrote, “Right. It’s not a scam, it’s called smart business for Kylie.”
Her cosmetics business aside, Kylie has just taken to Instagram to reveal her natural hair. The mother of one shared a video of her rocking short hair that looked wet after she dyed her dark roots a lighter color. “roots almost there,” she wrote over the clip, adding a colorful filter of butterflies.
Not accustomed to seeing the reality TV star’s natural hair, one commented, “Thats crazy i swore her hair was long. Bomb ass weaves.” Some others trolled her for her apparent thin hair. “I got more hair than her,” one wrote. Another similarly wrote, “She has no hair,” while someone else claimed, “But shes bald headed tho.”
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