Former Birchbox CEO and co-founder Katia Beauchamp has hired a law firm to demand nearly $2.1 million from FemTec Health and its CEO Kimon Angelides.
Beauchamp alleges that FemTec Health and Angelides have failed to pay the $2,092,000 agreed upon in a July 2021 Share Purchase Agreement, according to legal correspondence obtained by Retail Dive. FemTec Health acquired the beauty box company in October 2021 for around $45 million.
The letter says that if FemTec Health has not paid the sum within 14 days, Beauchamp “reserves the right to pursue all available remedies,” according to the May 4 correspondence from representing law firm Lewis Brisbois Bisgaard & Smith. Beauchamp hopes to resolve the matter amicably, per the letter.
The letter alleges that Angelides and FemTec Health’s failure to pay is the result of operating in bad faith. The sum was due to be paid on October 21, 2022 and the women’s health company allegedly did not provide justification for missing the payment.
FemTec Health allegedly communicated misleading information to Birchbox’s creditors and investors as well.
The legal correspondence says that in a letter from Angelides on October 31, 2022, the FemTec CEO said that leading up to the closing of the Birchbox acquisition, FemTec discussed whether to place Birchbox into Chapter 11.
However,legal representatives say Beauchamp is “not aware of any discussions concerning placing Birchbox into Chapter 11 prior to the signing of the Share Purchase Agreement.” Regardless of financial status, the letter says FemTec Health is still obligated to pay Beauchamp.
Angelides, FemTec Health and Lewis Brisbois Bisgaard & Smith did not respond to requests for comment at the time of publication.
FemTec Health — the owner of Birchbox and various health companies — is the subject of several vendor disputes that allege a lack of payment. Birchbox’s website was disabled for a period of time a few months ago before coming back online. However, customers are unable to make any purchases.
Birchbox was co-founded by Beauchamp — who currently serves as CEO of Victoria Beckham Beauty — in 2010.
