Coty Inc. the owner of Kylie Jenner's namesake beauty line Kylie Cosmetics, named a new CEO days after Forbes reported that Jenner gave the magazine false financial information about her brand.
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Coty, which purchased a majority stake in Kylie Cosmetics last year, tapped its chairman Peter Harf to replace outgoing Pierre Laubies as CEO of the cosmetics group amid a coronavirus-induced sales slump.
The management change comes after Coty shares tumbled Friday following a Forbes report alleging that Jenner -- who sold 51 percent of Kylie Cosmetics to the New York-based company for nearly $600 million -- and her mother and manager Kris Jenner, boosted the brand's financial value to the magazine.
Forbes dropped the youngest of the Kardashian-Jenner clan from its coveted billionaire's list, despite Jenner saying the report had "a number of inaccurate statements and unproven assumptions."
The New York-based beauty giant finalized a deal Monday to sell a majority stake in its professional beauty and retail hair business to KKR & Co. as the cosmetics company experienced a sales decline due to the coronavirus pandemic.
Coty has received a $750 million investment from KKR, with the remaining $250 million expected to be completed in the next two months. KKR also agreed to purchase a 60 percent stake in Coty's professional beauty and retail hair-care businesses for about $2.5 billion.
"I've known Coty for a long time and there is a lot of potential within this company. I'm delighted to return to an active leadership role. We are all energized by the task ahead – to lead Coty to the best it can be. Further, in KKR, we have a world-renowned investor that will work alongside us in transforming Coty," Harf said in a statement.
With consumers trending toward natural beauty and wearing less makeup, particularly while many are still in quarantine, Coty is investing in makeup brands like CoverGirl, Sally Hansen and Rimmel. Coty also said its aiming for a net reduction in fixed costs of approximately $600 million in cash over the next three years.