Cover FX and Mally Beauty Announce Permanent Closure in 2026

Two well-known beauty brands, Cover FX and Mally Beauty, have announced their decision to permanently cease operations as of January 22, 2026. This closure reflects broader challenges facing the beauty industry, including an oversaturated market and shifting consumer spending habits.

Founded in 1999 by Victor Casale, co-founder of MAC Cosmetics, and medical skincare expert Lee Graff, Cover FX garnered a loyal following for its innovative products. The brand was acquired by L Catterton in 2011 and later purchased by AS Beauty in 2022. Mally Beauty, on the other hand, was established by celebrity makeup artist Mally Roncal in 2005 and gained immediate popularity, selling out its QVC launch in just 36 minutes.

Market Challenges and Consumer Behavior

Both brands cited challenges such as tariffs and a shifting global market in their announcements. According to AS Beauty, this strategic decision allows the company to focus resources on brands that show sustained growth potential. “This allows us to concentrate our resources, investment, and talent on the brands that are demonstrating sustained growth and long-term potential,” an AS Beauty spokesperson stated to Business of Fashion.

During its peak, the beauty industry was valued at approximately $450 billion in 2025, with a projected annual growth rate of 5% through 2030, according to McKinsey & Company. Despite this positive outlook, consumer preferences have evolved, leading to a more discerning market. As shoppers become increasingly selective, brands must innovate rapidly to remain relevant.

The Impacts of Economic Shifts

While the prestige beauty market in the U.S. rose by 2% to $16 billion in the first half of 2025, the overall economic environment has forced many brands to rethink their strategies. Analysts at McKinsey & Company noted, “A strong uptick in beauty spend, plus higher inflation and greater access to information, has pushed shoppers to pay closer attention to whether products deliver.”

The pandemic exacerbated existing pressures, with many brands facing significant declines in makeup sales during early 2020. This downturn prompted widespread store closures and a reevaluation of product offerings. As competition intensifies among retail giants like Sephora and ULTA Beauty, brands must navigate an increasingly challenging landscape to survive.

Cover FX and Mally Beauty join a growing list of brands that have faced similar fates in recent years. For example, Pat McGrath Labs and Flower Beauty have also struggled, with the latter closing its doors in September 2025. The beauty sector’s resilience is under constant scrutiny as brands seek new funding and innovative strategies to stay afloat in a rapidly changing market.

As of now, customers can still purchase remaining stock from both brands through their respective websites and platforms like Amazon and QVC. The closure of Cover FX and Mally Beauty marks the end of an era for these once-beloved labels, highlighting the significant shifts occurring within the beauty industry.