In a significant move within the beauty industry, high street cosmetics brand Barry M has been purchased out of administration by London-listed Warpaint for a sum of £1.4 million. The acquisition, finalized recently, includes the Barry M brand and its intellectual property, but notably excludes the brand's factory and its workforce.
Strategic Expansion for Warpaint
Warpaint, which owns popular make-up brands such as W7 and Technic, has stated that this acquisition is expected to bolster its growth into key retail channels across the United Kingdom. Barry M currently maintains stands in over 1,300 stores, including major retailers like Superdrug, Boots, Sainsbury's, and Tesco, in addition to its online sales platform. This extensive retail footprint presents a valuable opportunity for Warpaint to enhance its market reach and consumer base.
Barry M's Legacy and Recent Challenges
Founded in 1982 by Barry Mero, the British brand has become a staple on the UK high street, renowned for its vibrant nail varnishes and affordable, vegan, and cruelty-free make-up products. Following Barry Mero's death in 2014, leadership of the business was passed to his son, Dean Mero. Despite its strong brand identity, Barry M faced financial difficulties, leading to the appointment of administrators last year. The company cited "geopolitical issues" and rising prices, which were absorbed into its cost base, as contributing factors to its struggles.
According to its most recently published financial results, for the year ending February 2024, Barry M generated a turnover of £17.4 million and a pre-tax profit of £172,000. The brand employed an average of more than 120 staff during that period, with the majority working at its manufacturing site in London. However, these assets are not part of the acquisition by Warpaint, raising questions about the future of the factory and employees.
Warpaint's Financial Outlook and Market Impact
Warpaint, whose products are also stocked in various high street retailers, has informed investors that earnings for the 2025 financial year are projected to be approximately £22 million. However, the company acknowledged challenges, particularly the collapse of beauty retailer Bodycare last year and the subsequent closure of all its stores. This event negatively impacted Warpaint, as Bodycare was a significant retail customer for its Technic brand.
The acquisition of Barry M represents a strategic pivot for Warpaint, aiming to mitigate such market volatilities by diversifying its brand portfolio and strengthening its presence in the competitive cosmetics sector. Industry analysts suggest that this move could help Warpaint leverage Barry M's established consumer loyalty and retail partnerships to drive future growth, despite the exclusion of physical assets in the deal.
