New Thirteen Lune Owner SNR Capital Vows To Mend Brand Relationships

SNR Capital has taken over Thirteen Lune in an insolvency process that’s left brands owed money by the inclusive retailer without compensation, although the financing and fulfillment firm has committed to repair fractured relationships with them and arrive at monetary arrangements tenable for all parties.

“We are looking at creating bespoke solutions on a brand-by-brand basis so these brands have an opportunity to be made whole,” says Conor Riley, principal at SNR Capital, which has the brands Luxie Beauty, Formula Z, Humble, Nailtopia and Arches & Halos in its portfolio as well as Thirteen Lune. “That is not an obligation we have. It’s something we feel is the right thing to do.”

Called an assignment for the benefit of creditors, the insolvency process Thirteen Lune is undergoing allows a distressed company to transfer assets to a third party for liquidation. Increasingly common among consumer companies, it was initiated by the retailer on Dec. 16 after it contacted 72 buyers and failed to find one that would pay above $5.1 million, the amount of its debt that was held by consumer packaged goods lending platform Settle, according to an email to Thirteen Lune brands from Sonoran Capital Advisors, a restructuring outfit hired to handle Thirteen Lune’s assets. SNR Capital assumed the debt, but no cash proceeds were available to distribute to creditors.

The firm’s acquisition of Thirteen Lune was first reported by the publication Women’s Wear Daily, but the process that led to it and the financial ramifications haven’t previously been covered. Several founders of brands carried by Thirteen Lune informed Beauty Independent that it owes them thousands of dollars. Initially enthusiastic about the retailer’s showcasing of minority-owned brands, most don’t anticipate recovering what they’re owed and are wary about maintaining a connection with it.

SNR Capital, a financing and fulfillment firm affiliated with distributor and e-commerce company The PCA Companies, has taken over inclusive retailer Thirteen Lune, including its Los Angeles store and brand Relevant: Your Skin Seen, in an insolvency process.

Also per the email from Sonoran Capital Advisors, in 2023, Thirteen Lune engaged an investment bank to pursue a sale and no transaction resulted. It subsequently fell behind on vendor payments, and its partnership with J.C. Penney was restructured last year to have payments to brands from J.C. Penney rather than Thirteen Lune. Thirteen Lune entered J.C. Penney with 50-brand assortments in 10 locations in 2021 and later expanded to assortments in 600-plus locations with a slimmer roster of about 32 brands.

Nyakio Grieco and Patrick Herning launched Thirteen Lune in 2020, and it secured $12.5 million in funding throughout its history from celebrity investors and VC firms such as Sean Combs, Gwyneth Paltrow, Naomi Watts, Fearless Fund, Capstar Ventures and BrainTrust. Grieco remains involved with Thirteen Line. Herning doesn’t.

Riley suggests he understands concerns brands have about Thirteen Lune’s prospects, particularly in a business environment that’s been fraught, but stresses SNR Capital is busy trying to stabilize its operations and achieve resolutions to issues brands experienced under prior ownership. He’s in the middle of reaching out to more than 150 brands Thirteen Lune has relationships with and estimates it will probably take a few weeks to land on resolutions.

“The real thing I want to communicate to the brands is that slow and steady growth is what we are looking for and good communication with them and to be a platform where they can grow and make a meaningful impact. I think that 2025 is going to be a really good year, and the future is bright. I hope they can come along for the ride,” says Riley, adding, “The brands themselves are amazing. They do so many different things, from skincare to scents to candles and more. We are feeling lucky to have an opportunity to work with the vast ecosystem of brands.”

“Slow and steady growth is what we are looking for.”

According to Riley, SNR Capital is keeping Thirteen Lune’s inclusive positioning—the retailer describes itself as a destination for the discovery of brands from Black and brown founders—and its store on Larchmont Boulevard in Los Angeles that opened in 2022. He mentions interest in the possibility of shop-in-shops beyond it and J.C. Penney to extend Thirteen Lune’s footprint and cross-pollination with SNR Capital’s other brands.

Discussing Thirteen Lune’s inclusive positioning, Riley says, “Now more than ever it’s the time to invest in those brands and invest in platforms that support those brands and continue that mission and vision.” Asked about Relevant: Your Skin Seen, a clean beauty brand Thirteen Lune introduced in 2022, he says, “At this point, we are really just focused on Thirteen Lune and growing that platform.”

SNR Capital is affiliated with The PCA Companies, a company started in 1993 as a fragrance distributor that’s broadened to logistics, e-commerce and licensing. Last year, it obtained the United States wholesale arm of British beauty retailer Space NK. The PCA Companies CEO Piyush Golia is a principal at SNR Capital along with Riley.

Riley says SNR Capital hopes to be an active beauty dealmaker this year and could strike as many as 10 to 20 deals. He explains, “We’ve got a pretty flexible model and think that we could be a good partner to brands both big and small. Our investment thesis is, what’s cool? What’s something niche that we can make happen? Then, we go from there. It allows us to see a lot more deals.”