Hello, Bello, once a strong-footed brand that made baby care affordable, has filed for bankruptcy. So, is Hello Bello going out of business?
With each passing day, more and more companies are filing for bankruptcy, closing stores, and going out of business.
And if you are worried about your favorite baby care brand, Hello Bello, and whether it will survive, then you can’t miss this guide!
About Hello Bello
Hello Bello is a Los Angeles-based diaper and baby care brand that was founded by celebrities Kristen Bell and Dax Shepard in 2018.
The company was known for selling baby care products such as vitamins, body care items, diapers, home essentials, and more for a really affordable price.
But as of now, the company has joined names such as Intermix, Bud Light, etc., who are all set to close plenty of their outlets owing to inflation and changing trends.
So, is Hello Bello really going out of business? Keep reading to find out!
The Rise And Fall Of Hello Bello
After its initial launch in 2018, the company was selling products via Walmart and through its D2C channels.
Before COVID-19, the brand was performing well and had a strong position in the market with a strong online subscription service.
However, the company relied heavily on a third-party manufacturer, Irving, which increased prices considerably beyond what Hello Bello could afford.
“For example, over time, the manufacturer increased diaper production prices by over 18%; however, [Hello Bello’s] main wholesale retailers, such as Walmart and Amazon, would not accept a price increase of more than 10%,” said Buxton in court documents.
To cope with this, Hello Bello opened their own manufacturing unit in Texas. However, they were still procuring items from Irving because their manufacturing unit was still set up. As a result, they ended up with excess inventory.
Due to Covid-19 restrictions, the brand was also experiencing delays in operationalizing its production lines. They were having difficulty in staffing the facility as well.
Hello, Bello undertook plenty of cost-saving efforts, including cutting down on its international footprint, trimming its corporate workforce by 20%, charging shipping fees, etc. However, all efforts were fruitless.
Is Hello Bello Going Out Of Business 2023?
Yes, Hello Bello has filed for Chapter 11 bankruptcy, and the company listed assets and liabilities of at least $100 million in its bankruptcy petition. As per the court documents, Hello Bello’s largest creditor is a tissue products supplier who may be owed more than $22 million.
The baby care brand has taken the step to figure out a way to repay its creditors and to be acquired by Hildred Capital Management.
To make the acquisition happen, Hello Bello and its affiliates have filed voluntary petitions for relief under Chapter 11. The company is hoping to get an approval of the proposed transaction soon.
The company is anticipating that this acquisition will allow it to generate enough money to fund its business operations for the next few months.
As of now, the financial agreements of the deal have not been disclosed. However, the brand is hoping to get the acquisition approved under section 363 of the U.S. Bankruptcy Code in the next few months, which will allow it to open for better offers.
Why Is Hello Bello Going Out Of Business?
Hello, Bello, once a strong-footed diaper and baby care brand, has filed for Chapter 11 bankruptcy because of rising inflation and high shipping and production costs.
“Given macroeconomic trends, including inflation and increased shipping costs, we believe that this course of action is the best path forward to ensure that Hello Bello continues to bring families the highest quality and most environmentally friendly products at affordable prices,” Erica Buxton, the company’s chief executive officer, said in a statement.
With such turbulent economic times and consumers tightening their grip on spending, Hello Bello and plenty of other major companies are taking the same route.
Wrap Up
The current economic condition of the country, rising inflation, and the cost of supply chain production are all reasons that are driving many companies to bankruptcy this year.
Hello Bello, a baby care brand is set on the same path but is hopeful that the acquisition will turn the tables around for them in the near future.
How will it all end for Hello Bello? Only time will tell!
We hope you found this article on- Is Hello Bello Going Out Of Business 2023 useful.
FAQs
Who owns Hello Bello?
Hello Bello is owned by celebrities Kristen Bell and Dax Shepard currently.
Where is Hello Bello headquartered?
Hello Bello is headquartered at 2046 Hillhurst Avenue, Los Angeles.
Is Hello Bello making loss?
In the financial year ending on Jan. 31, 2023, Hello Bello made $179 million in sales but had a negative EBITDA of about $15 million.