Birchbox is weighing its options, including chapter 11 bankruptcy, sources have told WWD.com. In a letter to creditors sent Tuesday, Birchbox’s parent company FemTec Health, which acquired the business last year, said those owed money from Birchbox could opt into shares of FemTec instead. “We believe, in the best interests of Birchbox and the entire FMTC family of companies spanning the U.S. and Europe, a chapter 11 or some equivalent structure may be necessary,” the letter read. Birchbox was founded in 2010 by Katia Beauchamp and Hayley Barna as the original beauty subscription box service, but the company has struggled in recent years. The letter said Birchbox’s revenue projections dropped from $74 million to $47 million, even following a $30 million infusion from FemTec.
