Companies rarely simply decide to close. In most cases, especially with retailers, they go through a painful death process.First, regular customers may notice that certain items go out of stock more often and that shelves feature odd sizes and less popular merchandise. That happens when a company tries to preserve cash to buy itself time.Related: Report: Chapter 11 bankruptcy likely for a huge radio companyThe problem is that in a digital era customers aren't placing in-store orders to pick up later. If something you need isn't on the shelf, chances are you'll simply order what you wanted on your phone for delivery in two days or less.That creates a certain cycle of inevitability. You can't get out of a financial hole by selling fewer items, so in most cases, a Chapter 11 bankruptcy is the next step. Chapter 11 protects a company from lawsuits, giving it the chance to negotiate with its creditors, look for new investors, and try to find a path back to profitability.In some cases, like Party City and David's Bridal, Chapter 11 works and the company emerges from the process more financially sound. A lot of the time, however, Chapter 11 turns into a Chapter 7 liquidation as was the case with Christmas Tree Shops, Bed Bath & Beyond and Tuesday Morning. A retailer simply setting a date when it will close is rare, but that's what happening with a popular online beauty brand.
Online-only digital retailers have struggled to gain market share because customers can't try their products.Image source: Getty Images
Boscia tried to change the beauty world Boscia, which describes itself as "the leader in clean beauty," has a noble mission but faced significant challenges. "Since 2002, plants have been the secret to our skincare success," it said on its website. "We use ingredients rooted in nature — plant-to-bottle formulas that show results with fun formulas. Good skin comes naturally because in our world, beauty really does grow on trees."The problem, and it's one that has hit many online-only retailers, is that having a noble mission isn't as important as having stores where people can try your products. "At Boscia, we empower plants to do their jobs — letting ingredients go with their natural instincts. Our products will really grow on you, because all that green really does make your skin glow. Sensitive skin? No problem. Boscia is designed with sensitive skin in mind," it added.The company reached high, but it faced enormous competition. And while it has had some success, the mission failed and Boscia will close for good on May 31.Boscia not filing for bankruptcyBoscia hasn't filed under the bankruptcy laws. Instead, it will simply close its retail store at the end of May. It posted a brief message on its website and Instagram page. "We regret to inform you that we will be closing our website on 5/31. We want to express our sincere gratitude for your loyal support throughout the years. Thank you for being part of our journey," the Irvine, Calif., company said. Currently, there is a 55% off sale on everything on the Boscia website. The company, which also sells on Amazon, is not just closing its website. It plans to shut down entirely, Beauty Independent confirmed.That's a blow to its customers since while many copycat companies have opened since Boscia launched in 2002, the company's product line is unique. "We're revolutionizing beauty routines around the world with products that are made for play and meant to be shared, because your skin wants in on the fun! Our goal? Skincare meeting the modern world, with an attitude of exploration and excitement" was how Boscia described itself. That revolution, such as it was, will end on May 31 although an asset sale remains possible. The company has not disclosed any plans beyond its closing sale. An attempt to contact Boscia through its "Contact Us" page was not immediately answered.
