In 2019, Kristen Bell and Dax Shepard founded Unconditional Love Inc., which operates as Hello Bello. Hello Bello produces environmentally friendly diaper and baby products. In 2020 Hello Bello accepted an investment from private equity firm VMG Partners.
By 2021, Hello Bello was the largest direct-to-consumer diaper brand. It signed up 130,000 subscribers and hit $200 million in net sales. But while those sales were looking impressive, the company was struggling financially after it started to expand.
Unfortunately, the company just for Chapter 11 bankruptcy. In its filing, the company listed over $100 million in liabilities, including $22 million owed to one entity, a paper producer.
For the fiscal year ending January 31, 2023, Hello Bello had about $179 million in sales and a negative EBITDA (earnings before interest, taxes, depreciation, and amortization) of $15 million.
Bell and Shepard aren’t the only people who own stakes in the company. Here’s a breakdown of Class A ownership, per court filings.
Rick Kern/Getty Images
Shepard and Bell each own 6.63% of Hello Bello, for a total of 13.26% between them. Jay McGraw — son of Dr. Phil — owns 24.6% of the company. VMG, the private equity firm, owns 25%, and STK NEVADA TRUST is listed as the owner of 22%, though it’s unclear who’s involved with that trust.
Bell and Shepard started Hello Bello after looking at diaper options for their two daughters and discovering results they weren’t pleased with. They partnered with McGraw and Sean Kane, who co-founded Honest Brands alongside Jessica Alba.
The company launched as a Walmart exclusive, appearing in 4,700 stores and being competitively priced compared to other options. But the diaper business is notoriously expensive and hard to succeed in. Hello Bello opted to manufacture diapers themselves, building a facility in Waco, TX, with an assist from Chip and Joanna Gaines (yes, the HGTV legends).
Even with all those impressive sales numbers, Hello Bello couldn’t keep up with the operating expenses and other costs of running the business.
Pardon the terrible wordplay, but it’s a real crappy situation all around.
Read More: World News | Entertainment News | Celeb News
Celebrity Net Worth
