A cosmetics retailer that has been hit with a $1.2 million lawsuit for breach of contract has filed a bankruptcy petition.
Roxxy cosmetics filed for Chapter 11 bankruptcy in Nevada on Tuesday, the company’s filing said.
The lawsuit filed on behalf of Roxxy’s parent company, The Beauty Brand Group LLC, and the cosmetics giant Sephora Inc., accuses Roxxy of misleading consumers and retailers about its products, the filing said.
“Roxxxy has been the victim of a fraudulent scheme that has caused a massive financial loss to the cosmetics business, which has led to the loss of at least $1 million,” the filing stated.
The company filed for protection under Chapter 11 of the U.S. Bankruptcy Code on May 26.
Rozxy’s creditors were unable to reach an agreement to dismiss the lawsuit.
Sephora had not immediately responded to a request for comment.
Roxy cosmetics has faced criticism from the consumer advocacy group Consumers Union for selling products that were less than safe.