When a company stops shipping products and disables its website, those are generally not very good signs. When customers have already paid for products that don't get delivered, well, that's often something you can't come back from.
A number of retailers have filed bankruptcy this year with David's Bridal and Party City both surviving. To varying extents, both companies take deposits and even payment for items ranging from irreplaceable (wedding dresses) to inconveniencing (party supplies) if they don't get delivered as expected.
DON'T MISS: Amazon-related retailer files surprise Chapter 11 bankruptcy
Had David's Bridal simply stopped delivering the wedding dresses customers had ordered months before, there likely would have been no coming back from that. The company avoided that and was rescued at the last minute before its Chapter 11 turned into a Chapter 7.
Party City, of course, is not quite as essential a retailer, but if it breached its customers' trust by not delivering pre-paid goods, it would have badly weakened its brand. That did not happen in this case either as the chain successfully found new funding.
Beauty Box retailer Birch Box sits somewhere between David's Bridal and Party City, except as a subscription service, it has a more direct relationship with its customers. And, when the direct-to-consumer brand's website went down in February, the company stopped shipping orders and paying vendors.
At the time, the company's then-owner offered customers no answer. Now, the once-popular beauty box subscription service has a new owner, and it's working to win back its jilted customers.
Image source: TheStreet
Birchbox makes an unlikely comeback
Birchbox's assets were acquired by Retention Brands, a company that specializes in subscription services, from former owner FemTec Health. The company never formally filed for bankruptcy, but Birchbox had ceased operations and stopped communicating with customers.
The new owner has changed that, reopening the Birchbox website for new members, and shipping out June and July beauty boxes. Birchbox's new owner also shared that it expects shipping to return to its normal cadence by September.
That's welcome news for existing customers who likely thought that the service had been lost forever. Of course, opening for new orders also reopens the ability for people to cancel.
Birchbox also shared that it's going to make its boxes customizable, a new feature, which it detailed on its FAQ page.
Customization will allow you to select the exact samples and size you want in in each box. For example, if you like to receive full-sized items, simply remove 4 standard-sized samples, and replace it with a full-sized item! Should you prefer all standard samples, you can be sure to select all 6 products in sample size," the company shared.
Not all of Birchbox's changes are a positive
In addition to adding customization, Birchbox has also raised its prices.
Prices have increased for the company’s subscription service. Existing Ace-level membership prices were bumped up from $10 to $15 a month, RetailDive reported.
"New customers are able to sign up for refillable plans such as a $20 monthly membership, a prepaid three-month option at $19 per box, and a prepaid annual membership at $17 per box," the retail news website shared.
Birchbox explained the increases on its newly-reactivated Facebook page.
“This price update allows us to continue to seek out products from the newest disrupters in the beauty industry, as well as the luxury brands we have all consistently come to adore,” Birchbox posted. “It will help offset the increase transportation and labor costs, while continuing to ensure an elevated selection of beauty products are curated every month.”
Birchbox also has to deal with general consumer tiredness when it comes to subscription boxes. With Ulta Beauty (ULTA) -) operating in many Target stores and Amazon offering a wider array of beauty products, this space has gotten crowded and even the new-look company faces a challenging road ahead.
