FB Debt Financing Guarantor is now in a post-sale wind-down and distribution posture, with the latest monthly operating report showing no full-time employees, Chief Wind Down Officer oversight, and roughly $2.4 million of bank cash remaining as of March 31, 2026 in the March 2026 Monthly Operating ReportDkt. 1327. The estates are no longer operating the historical FORMA / Morphe platform as a going concern; the live case work is claims administration, professional-fee payment, reservation of U.S. Trustee fees, and distributions on allowed administrative, priority, and general unsecured claims.
The debtors filed chapter 11 on January 12, 2023 after a sharp deterioration in the beauty portfolio’s business: COVID-era retail disruption, changing consumer habits, weakened influencer-driven sales, terminated or disputed brand relationships, and a balance sheet carrying first-lien term loan, revolver, bridge, and sponsor PIK obligations described in the Marotta First Day DeclarationDkt. 21. At filing, the company had closed all U.S. retail stores, retained only limited international retail activity through non-debtor entities, reported only about $400,000 of unrestricted cash, and sought immediate liquidity through a proposed $33.0 million DIP facility while pursuing a sale process anchored by a stalking horse bid from an entity controlled by the collateral and DIP agent, according to the same Marotta First Day DeclarationDkt. 21.
The current distribution path is reflected in the April 2026 allowed-claims notice: after payment of allowed professional fees and reserving for U.S. Trustee fees, the debtors are authorized to pay allowed administrative and priority claims and then make pro rata distributions to holders of allowed general unsecured claims from the remaining GUC pool, with objections to the listed administrative and priority claims due May 6, 2026 at 4:00 p.m. ET under the Allowed Administrative and Priority Claims NoticeDkt. 1324. The latest MOR indicates the estates still carry significant residual liabilities at several debtor entities, so the practical near-term posture is not business rehabilitation but final estate monetization, claims resolution, and distribution mechanics.
