Is Kylie Cosmetics Going Bankrupt? Models Are Forced to Sue… to Get Paid on Top!!!
Rumors are swirling that Kylie Cosmetics is on the brink of bankruptcy—and the latest lawsuit only Fan-grabs the flame. In June 2023, model Sasha Palma filed a lawsuit against Kylie Cosmetics, claiming the company failed to pay her on time for two separate photo shoots in June and August 2020. Each shoot was a one-day gig at $2,000, and Palma alleges the company missed the 30-day payment deadline both times—entitling her to penalty fees of $60,000 per shoot and a total sue of $120,000 (allaboutthetea.com, TMZ, ClutchPoints).
The fashion brand’s rep fired back, stating Palma was indeed paid before the NET-45 invoice terms for both sessions and that they have documentation to prove it. An insider even suggested that a delay could have stemmed from the model’s own agent withholding funds (allaboutthetea.com, TMZ).
So does this lawsuit confirm that Kylie Cosmetics is struggling—or even bankrupt? Not quite.
Despite declining revenues (some reports indicate a revenue drop of more than half from 2017 to 2023) (distractify.com), there’s no direct proof that the company is insolvent. The brand sold a majority stake to Coty in 2019 for $600 million, affirming its value (Wikipedia, The Fashion Law). Meanwhile, the lawsuit appears to be a payment dispute—whether due to administrative delays, miscommunication, or documentation issues—not a sign of financial collapse.
In short:
- Not bankrupt—yet: There’s no legal or financial filing to suggest Kylie Cosmetics is insolvent.
- Model lawsuit ≠ collapse: The legal action stems from an alleged late payment—not an inability to pay.
- Brand’s status remains uncertain: Revenue declines and diversification hint at challenges, but bankruptcy remains speculative.
Let me know if you’d like a deeper dive into the company’s financial trends or legal history!
