Rise and Fall: Case Studies of the Biggest Celebrity Brand Failures in Recent Years

The past few years have revealed a hard truth: even the biggest celebrities can’t guarantee business success just by lending their name. While stars like Rihanna (Fenty Beauty) and Kim Kardashian (Skims) remain strong players, many others have witnessed a rapid rise-and-fall that plays out like cautionary business case studies.

Below, we break down some of the most significant celebrity brand failures — their timelines, numbers, public reactions, and what ultimately went wrong.


Case Study 1: Jaclyn Hill’s Beauty Empire Collapse

Timeline:

  • 2019 Launch Disaster: Customers flagged Jaclyn Cosmetics lipsticks for contamination — mold spots, embedded fibers, and a strange texture. Social media backlash was swift, leading to a full product recall within weeks.
  • 2019–2022: Brand soldiered on but sales momentum never fully recovered.
  • 2023: Hill shut down jewelry brand Jaclyn Roxanne and comfort-wear line KozeKoze faced accusations of copying another creator’s name.
  • Jan 2024: Parent company Forma Brands (also behind Morphe) filed for bankruptcy. Jaclyn Cosmetics ceased operations “indefinitely.”

Financial Impact:
Exact sales numbers weren’t disclosed, but industry estimates suggested a revenue drop of over 60% between 2020 and 2023.

Public Reaction:
The original lipstick scandal damaged Hill’s credibility severely. Even supporters felt product quality had been sidelined for profit, which became a long-term trust issue.

Key Cause of Failure:
Quality control breakdown compounded by brand image damage and over-reliance on founder personality rather than operational stability.


Case Study 2: Kevin Hart’s Vegan Chain — Hart House

Timeline:

  • Aug 2022: First outlet opened in Los Angeles with buzz around plant-based fast casual dining.
  • 2022–2023: Expanded to four locations, positioning itself as an eco-conscious rival to In-N-Out and McDonald’s.
  • Sep 2024: All outlets abruptly closed without a detailed public explanation.

Financial Impact:
Sources suggest operational costs soared 15–20% after California’s $20 minimum wage law for fast-food chains. Combined with slow customer growth, margins became unsustainable.

Public Reaction:
Fans expressed surprise and disappointment on social media; some pointed to oversaturation of vegan options in LA and lack of menu differentiation as possible culprits.

Key Cause of Failure:
Operational cost pressures combined with insufficient market moat in a crowded, trend-driven segment.


Case Study 3: Sarah Jessica Parker’s SJP Shoe Line

Timeline:

  • 2014: Launched SJP by Sarah Jessica Parker with George Malkemus III, ex-Manolo Blahnik executive.
  • 2015–2019: Available in luxury retail stores and online, receiving press attention for feminine, NYC-inspired designs.
  • 2020s: Declining international distribution and changing consumer behavior toward athleisure over high-heels.
  • Aug 2024: Closure announced, marking the end of a 10-year run.

Financial Impact:
Sales figures not public, but insiders cited multi-year revenue decline and unsustainable production costs.

Public Reaction:
Fashion circles lamented the loss of an elegant niche brand, but wider consumer shift to everyday comfort wear made its proposition less relevant post-pandemic.

Key Cause of Failure:
Market trend shift away from formal footwear; inability to adapt to comfort-driven styles quickly.


Case Study 4: Victoria Beckham’s Fashion Struggles

Timeline:

  • 2008: Brand launched to critical acclaim.
  • 2008–2019: Continuous annual losses; 2019 operating loss of $16.3M on $53M sales.
  • 2020–2023: Attempted restructuring, cost cutting, and investor involvement.
  • 2024: Reports hint profitability may finally be within reach.

Financial Impact:
Accumulated losses of approx. £98M ($123M) over 15 years.

Public Reaction:
Mixed — admired for design integrity, but criticized for elitist price points disconnected from market demand.

Key Cause of Failure:
Pricing misalignment, overemphasis on image over scalable retail strategy, and high fixed costs.


Case Study 5: Indian Celebrity Brand Pressures

Virat Kohli’s WROGN

  • FY24 Revenue: ₹243.75 crore, down 29.2% year-over-year.
  • Cause: Increased competition from D2C athleisure brands, less aggressive marketing push, and retail slowdown.

Deepika Padukone’s 82°E Skincare

  • FY24 Revenue: ₹22.82 crore; EBITDA loss: ₹25.1 crore.
  • Public Reaction: Criticism on social media for high pricing vs. perceived basic product formulas.
  • Cause: Premium pricing without sufficiently differentiated product experience.

Rise and Fall: Case Studies of the Biggest Celebrity Brand Failures in Recent Years

Case Study 6: Prime Energy Drink Crash — Logan Paul & KSI

Timeline:

  • 2022: Launched in US, UK; demand so high that resellers fetched hundreds of dollars per bottle.
  • 2023: Expanded globally; started encountering supply chain strain.
  • Q1 2024: UK sales plummeted 50% year-over-year.
  • 2024: Multiple lawsuits — from the US Olympic Committee to suppliers — piled up; caffeine mislabeling allegations hurt brand trust.

Financial Impact:
Supplier lawsuit alone totals $68M claims; market share loss to competitors like Gatorade and Celsius.

Public Reaction:
Viral criticism online, especially around alleged “forever chemicals” and risky caffeine levels for minors.

Key Cause of Failure:
Overdependence on viral hype, inadequate compliance oversight, and backlash from legal and safety concerns.


Key Patterns Across All Cases

  • Fame accelerated initial traction but couldn’t offset operational weaknesses.
  • Quality scandals or pricing mismatches eroded consumer trust.
  • Shifting market trends made some offerings obsolete faster than anticipated.
  • Inexperienced leadership teams often replaced seasoned operators — a critical execution flaw.

Takeaway for Celebrity Entrepreneurs

The era when a celebrity name could carry a brand indefinitely is over. Today’s consumers demand substance — authentic storytelling, consistent founder involvement, and rock-solid product quality. The winners will be those willing to operate like true businesspeople, not just endorsers.

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