A brand that once promised science-backed skin care solutions for men, Disco has ceased operations. The company, formally known as Let’s Disco, Inc., filed for Chapter 7 bankruptcy on November 16, 2023, as reported by industry insiders and confirmed through court documents.
The brand, which had been making its mark in retail giants such as Nordstrom and Amazon, listed assets up to $50,000 against liabilities ranging from approximately $1 million to $10 million. With a creditor count between 50 and 99, the bankruptcy filing indicated that no funds would be left for unsecured creditors once administrative expenses were paid.
Disco's founder, Benjamin Smith, took to LinkedIn to express his thoughts on the closure. He lamented the unfortunate outcome that left shareholders with nothing and led to the disbandment of what he described as a "great team." Subscribers and vendors were also left hanging as the company abruptly shut down. Smith highlighted the loss of millions in investor capital, which included contributions from friends, family, and respected funds.
The journey of Disco was not without its successes; the brand raised over $8 million in funding during its growth phase from 2020 to 2021. However, the tides turned in the subsequent years as the company struggled to secure additional capital. The debt became insurmountable despite efforts to reduce burn rates, right-size unit economics, and maintain a lean operation. The brand's debt provider foreclosed on it during the summer, leading to the eventual shutdown.
Smith pointed to several factors contributing to Disco's downfall, including challenges in resonating with the male demographic at scale, an overreliance on a hero product, and customer acquisition issues stemming from digital marketing changes associated with Apple’s iOS 14.5 update.
