San Francisco personalized skincare startup Curology named a new CEO on Monday, replacing founder David Lortscher in that role who is now executive chair of the board.
Former Revlon executive Heather Wallace effectively took over as Curology's chief executive on Sept. 26, the company said in a press release.
Wallace was Revlon's president of the America's division since March 2020, and before that held leadership roles at the German multinational Henkel, as well as the Switzerland and Massachusetts based pharmaceutical Novartis, according to her LinkedIn profile.
Revlon filed for chapter 11 bankruptcy protections in June, and in August a judge approved a $1.4 billion loan as part of the cosmetics giant's restructuring plan, according to Reuters.
Lortscher founded Curology in 2014 as a customized skincare subscription service that connects consumers with dermatologists who prescribe topical regimens for conditions like acne. On Monday, he told Bloomberg TV that it was the right time to transition out of the chief executive role.
"The skills you need to successfully found a company are just very different than the skills you need to take an established company like Curology and grow it to its full potential," Lortscher told Bloomberg TV.
In response to a question about the "cult of the founder," Lortscher said that founders should "pass the baton" more often.
"Every company is different but I do believe that the decision to pass the baton… should actually be made a lot more commonly because ultimately what we care about is getting our business to that next level," Lortscher said, "and the same person to successfully found a company isn't necessarily the right person to get you to that next level."
Wallace is taking the reins during a period of economic uncertainty, though.
JPMorgan Chase CEO Jamie Dimon told CNBC on Monday that he expects the U.S. and global economies to enter a recession by mid-2023.
Wallace isn't worried about Curology's growth potential, though, even if a recession were to hit.
"There are many things that go before skincare" when consumers pull back on spending, Wallace told Bloomberg TV. "Skincare is one of the most resilient categories… I do expect consumers to still spend in this area."
The U.S. skincare market reached nearly $20 billion through August this year, according to Statista, with facial care the majority of spending at $13.5 billion. And the whole category is expected to grow nearly 5% annually through 2026.
Could the 8-year-old company be thinking about an IPO in the near future?
"Who knows what the future will bring," Wallace told Bloomberg TV, and she continued that in the near term, at least, "we're going to be focused on profitable growth and reaching more consumers."
The company has raised $61.7 million total and was most recently valued at more than $831 million during a later stage round in 2019, according to PitchBook.
In March, Curology laid off around 150 employees across its operations and told the Business Times that it would still have more than 600 employees after the cuts.
It has served more than 4 million customers, according to its website.
