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Deciem’s Brandon Truaxe: the world’s most controversial beauty CEO, explained

The creator of the low-price skin care brand The Ordinary has been ousted after a year of erratic behavior, and now has a restraining order against him.

An assortment of products from several Deciem brands.
Deciem

Brandon Truaxe is the founder and CEO — though he likes to say his official title is “worker” — of Deciem, one of the buzziest skin care companies on the planet right now. When he launched the company, five years ago, it was immediately the talk of the beauty world. At this point, though, the cult of personality that he embodies has overshadowed the skin care company he built to the point that he is no longer in charge of the company he founded.

Deciem’s sales have hit $300 million, which is significant for a company best known for its inexpensive products, specifically from its marquee brand, The Ordinary. Kim Kardashian publicly claimed her love of one of the serums, which costs less than $10. Deciem has over 370,000 Instagram followers and a Facebook fan group that is 58,000 strong. Estée Lauder even took a minority stake in the company because of its unique brand proposition and incredible growth. But recently its products and business model have been eclipsed by Truaxe himself. While most CEOs stay safely behind the curtain, Truaxe placed himself into the fray.

The unconventional beauty brand founder’s exploits have been followed rabidly by those both interested in incredibly affordable skin care and those who just love messy gossip. As Deciem’s sub-brand the Ordinary gains popularity for its $9 acids, its founder gains notoriety for his incendiary and even offensive Instagram presence. He’s used the platform to insult fans, cancel partnerships, and even posted a photo of an impoverished-looking New Yorker in front of one of the brand’s stores.

In a video on Deciem’s Instagram, which has now been deleted, Truaxe said: “This is the final post of Deciem. ... We will shut down all operations until further notice, which will be about two months. Please take me seriously.” The location of the video was tagged as the White House. (It’s not clear that he is actually there, but the likelihood is low. He sometimes uses creative tagging to make points in his posts.) He went on to say, “Almost everyone at Deciem has been involved in major criminal activity, which includes financial crimes.”

The largely incoherent message was paired with a long, rambling caption in which he called out many in the company’s inner circle, then went on to name hotels, restaurants, other cosmetic companies, “so many porn ‘studios,’” Brad Pitt, George Clooney, Tom Ford, Mark Zuckerberg, Donald Trump, Richard Branson, Tim Cook, and Leonard Lauder, the patriarch of the Estée Lauder company. It’s unclear what the nature of the financial crimes Truaxe refers to are, or why they necessitate closing the stores.

Truaxe’s actions have worried Estée Lauder so much that after months of refusing to comment, they took him to court in Toronto. Legal paperwork that Truaxe himself shared on Instagram indicate that the conglomerate wanted to remove him from Deciem’s board of directors and appoint Nicola Kilner (who has been the co-CEO) as sole interim CEO, limiting his ability to fire employees, and prohibiting him from communicating with anyone on the company’s behalf. Now, a Canadian court has ruled to oust Truaxe as CEO, and has forbidden him from communicating via the brand’s social media pages. It has even issued a restraining order in light of a disturbing email he sent to Estée Lauder’s leadership team.

Behavior like this has been par for the course for Truaxe, who has given fans reasons to worry about his emotional state before. He posts on the brand’s official Instagram page himself — the rest of the social media team consists of one employee who responds to product usage questions — and has a history of posting confusing and sometimes concerning messages.

Truaxe has not hesitated to attack commenters who question him on the brand’s page. This behavior has led fans and critics to question his mental health and the health of the company, as well as speculate that the social media theatrics are actually just savvy marketing. It’s significant that the CEO of a very popular company is making snap decisions that can affect his 800 employees, as well as his fans, on a very public platform. Companies tout transparency, but Truaxe has taken it to a level that may actually cause the company to implode. His behavior has never escalated to this degree.

What is Deciem, and who is Brandon Truaxe?

Truaxe founded Deciem in 2013 and launched 10 sub-brands simultaneously — including hair care, supplements, and a men’s grooming line — which is pretty much unheard of in the beauty industry. His company, based in Toronto, also makes its own products, instead of contracting outside manufacturers, which is how most beauty brands work. Deciem employs about 800 people and has more than two dozen stores worldwide. Tagline: “The Abnormal Beauty Company.”

Truaxe is a computer programmer by trade, but he co-founded a high-end line of skincare called Euoko in 2008. One face treatment product cost over $700, an exorbitantly high price for skin care, according to an article published in W magazine at the time. He then exited that brand and founded Indeed Labs, another Canadian beauty company. He left that under “angry” conditions and with a non-compete agreement, according to an interview in 2016 with Cosmetics Business. “A combination of passion for bringing credibility to the functional beauty business and the revenge overly due to Indeed Labs led to the formation of Deciem,” he told the publication.

Deciem really took off after the company launched skin care brand the Ordinary in 2016. The line features exceptionally affordable skin care featuring well-studied ingredients that have been used in skin care for decades, like vitamin C, retinol, hyaluronic acid, and others. Most are in simple dropper bottles, and the formulas aren’t fancy; they often smell weird or have gritty textures. But the line took off because the price is cheaper than anything on the market, including products you can find at a drugstore.

A simple glycolic face acid costs less than $9; an equivalent at Sephora or Ulta can cost upward of $20. The Ordinary launched at a time when people were getting interested in and purchasing skin care in a way we haven’t seen in years. The Ordinary’s accessibility contributed to a democratization of sorts. Really effective skin care had previously been in the purview of those who could afford pricey products.

According to Truaxe, the brand has done about $300 million in sales. Beauty conglomerate Estée Lauder has a 28 percent minority share in the company, an association that has given the indie brand credibility but also invited scrutiny; customers were suspicious of Truaxe “selling out” when he accepted the investment.

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Nicola Kilner is an important part of the brand story. She joined Deciem early from UK drugstore brand Boots and had been integral to its growth; at one point her title was “co-CEO.” She was largely seen as the calm and moderating force in the company. But Truaxe fired her in February after a confusing string of events that culminated in Truaxe questioning her loyalty to him.

An experienced CFO, Stephen Kaplan, who had only been there about six months, quit around the same time in protest. Kilner was given two years of severance pay. She gave an interview to Elle magazine a few months after her firing, in which she seemed reluctant to say anything negative about Truaxe or Deciem. “Talking to Kilner is a bit like talking to someone rescued from a cult against her will,” wrote Carrie Battan in the article. This summer, Kilner was rehired at the company. (She has not responded to Vox’s request for comment.)

Truaxe has always been described as quirky in early interviews, but things started to get weirder at the beginning of 2018 when he started posting very personal and even bizarre messages on the brand’s official Instagram account. Companies the size of Deciem usually employ sizable social media teams, so it’s significant that a CEO chose to interact with the public himself via this medium.

The many, many company dramas

In January, Truaxe announced he was taking over the brand’s Instagram page. His first order of business was to pick a fight with another indie brand, Drunk Elephant, by suggesting its marula oil was too expensive. He apologized. After that came a series of pictures of garbage and increasingly more personal posts. He also appeared to be communicating with his team via Instagram, giving them orders by name and giving them directives by tagging them in posts. Redditors then discovered Glassdoor reviews suggesting that the company was not a great place to work.

In February, Truaxe took to Instagram to broadcast that the company would no longer be producing Esho, a brand of lip products made in collaboration with a UK plastic surgeon, Dr. Tijion Esho. Truaxe unceremoniously announced this, and according to Esho, without alerting Esho himself that it would be happening. (Esho is tagged in this week’s Instagram post as well.) It led to an almost year-long legal battle between the two.Esho told Vox that he secured trademark and other rights to the Esho brand, as well as payment he was owed, with the help of Deciem’s Nicola Kilner.

Following the ESHO posts, a Racked investigation, prompted in part by the negative Glassdoor reviews, revealed allegations by several employees of verbal abuse and other misconduct by Truaxe and others in management positions. It was generally acknowledged, including by those working at the company, that the leadership was disorganized, with people changing roles and job titles frequently.

But the brand was growing, opening a rash of new stores (including the one in which the indigent person camped out in front or prompting Truaxe to say, “This person is disrespectful to the beauty of the library; he is disrespectful to the beauty of Fifth Avenue”). During this period, the brand got picked up by Sephora and even got a shout out from Kim Kardashian, who was apparently a fan.

Since these flare-ups, Truaxe has been likened to Donald Trump by observers because of the way he sometimes speaks to followers on Instagram, though a group of fans of the brand tend to support him unconditionally. He picked a fight with Cosmetics Business when it reported on these comparisons. He’s angrily lashed out at fans on social media who have questioned his methods, expressed concern about his increasingly incoherent posts, or called him out for his sometimes brash communication style. He would often highlight retorts to them in Instagram Stories on the brand’s official page, which occasionally led to fans attacking those critics on social media.

“Anyone who insults me, I’ll insult back. Look, if someone drops a bomb on my house I will at least knock and maybe pee on theirs,” he told me in the summer in a previously unpublished conversation, when I asked him about angering his followers by insulting them.

Some of these events seem to have affected his relationship with retailers. Sephora carried the Ordinary for a short time online, then it disappeared. Truaxe had suggested that Ulta was going to carry the line, but that has not materialized. Victoria Health, a UK-based site (and one of the first to carry the Ordinary) dropped it recently and started stocking a competitor brand, Garden of Wisdom; Truaxe took to Deciem’s Instagram to post unflattering photos of the site’s founder.

He publicly announced, via a shared email on Instagram, that he would no longer be supplying product to indie beauty e-commerce site Beautylish. (German retailer Douglas recently started stocking Deciem, and the company has over a dozen freestanding stores in the US, the UK, Canada, Australia, Europe, and South Korea.)

Truaxe has also publicly called out his minority investor, Estée Lauder, a large and powerful company that has always controlled its image very tightly. He’s published emails from Leonard Lauder and other Lauder executives, airing dirty laundry like the fact that the company supposedly wouldn’t allow an artisan who tiles its stores to post her work on social media. (The woman’s family ultimately was upset at Truaxe for that post.)

The company is mentioned in this week’s Instagram post as well. In a statement to Vox, a representative for the company wrote: “The Estée Lauder Companies is a minority investor in Deciem, and, as such, we do not control the company’s operations, social media or personnel decisions.” It later updated that statement to include this: “We are deeply concerned by the material that has recently been posted on social media and will defend our rights as a minority investor.” The company took that a step further and initiated injunction proceedings against the company, The Canada Business Corporations Act states that it “gives a ‘complainant’ the right to bring a court action against a corporation where conduct has occurred which is oppressive, unfairly prejudicial or which unfairly disregards the interests of a shareholder, creditor, director or officer...The court may make any order it thinks fit, including awarding money damages, appointing a receiver, dissolving the corporation, forcing the acquisition of securities and amending charter documents.” (Truaxe did not answer his phone when Vox called for comment.)

In the full filing, Estée Lauder successfully moved to remove Truaxe from the board of directors and as co-CEO, leaving Kilner as the sole CEO. Lauder would like to limit the board of directors to Andrew Ross (the Estée Lauder executive who has been on Deciem’s board since the investment) and Truaxe’s longtime business partner Pasquale Cusano.

(There’s so much more history. You can read more of my old reporting here, and Elle also has a helpful timeline of events.)

The “financial crimes”

Now we are back to the “financial crimes” Truaxe mentioned on Instagram and has been alluding to for months. In the video, he announced that the company would close down. For a while, Deciem’s homepage was a black screen with a small green pi symbol in the center. Individual brand pages, such as for the Ordinary, could still be accessed.

According to an email leaked to Cosmopolitan UK, Truaxe ordered all the London stores except one to be closed until February 2019, accompanied by a warning that those not following instructions would be “terminated tomorrow.” No one answered phones at any of the London stores, the Miami store, or the Seoul store. (Truaxe and multiple others in the company did not respond to a request for comment.)

At the Amsterdam store, an apologetic woman who spoke English answered and said her boss told her to close the branch for two weeks, “but I don’t know why.” The Nolita store in New York City was open, but others in the city did not answer the phone. A source close to Deciem suggested that there was confusion behind the scenes and that more of the New York City locations would eventually be opened. Multiple stores had been reported closed by users on social media.

This is not the first time Truaxe has alluded to financial wrongdoings at the company. He’s posted increasingly disturbing videos, including one now-deleted post from a hotel in the UK in which he asked for his followers to call the police because he was worried for his safety. He once sent an email to all his employees stating he was “done” with Deciem.

During the summer, I spoke to Truaxe both on the phone and in person about some of these incidents, especially the insinuations that there were financial “crimes” at the company. He was vague, saying “authorities” were involved. He also suggested that he was served a lawsuit by his former Euoko partner and current Deciem minority stakeholder Pasquale Cusano, who did not respond to calls and emails. Truaxe sounded lucid during the in-person conversation, though he tends to speak quickly and occasionally rambles.

“I found things I don’t like in my company,” Truaxe said at the time. He would not offer more details when pressed. “Unless things are cleaned up, I won’t stay.”

Things have taken an even more bizarre turn, with Refinery29 reporting that #QAnon, the group that traffics in conspiracy theories, has apparently embraced Truaxe as one of their own.

Truaxe’s suggestion on Instagram that the company may shut down led to a bit of panic among customers and fans, as it has done on multiple other occasions when his behavior on Instagram has seemed erratic. The CBC, which ran a report on the company in July, spoke to a marketing expert who suggested that it might be a purposeful tactic to get customers to buy products in bulk. If it was premeditated, it’s working, if social media is any indication — though some are calling it a stunt:

Since his ousting as CEO and Deciem board member, Truaxe sent several legal documents to Vox, attached to a long and rambling email that he also posted on his personal Instagram account. In the email, he acknowledged that he has been served legal notice of a restraining order filed by Estée Lauder in the Ontario Superior Court of Justice, which requires him to remain at least 300 meters away from the company’s offices and from Leonard Lauder and Andrew Ross, the Estée Lauder executive who is a Deciem board member.

The restraining order was issued after Truaxe sent an email, also included in the legal paperwork sent to Vox, to both Lauder and Ross. It read:

l’ll be in your hometown in a few hours. Please advise if you prefer silicone-based or water-based lubricants for my approach into your criminal, destructive cunts, for the most politically-correct wording. You have now illegally removed access to my phone, email, and social channels. I’m confident that you know the world will have never seen a downfall greater than that of the fraudulent empire ELC, the Lauder family, and those related have built.

An email from Estée Lauder’s general counsel, included in the legal paperwork, called it “harrassing and menacing.” In the email that Truaxe shared, he writes that it was “admittedly very impolite” and that he was “very angry and confused.”

A spokesperson for Estée Lauder confirmed the restraining order had been granted. Truaxe did not respond to a request for comment.

It now seems that it will be harder than ever for Truaxe to regain control of the company he founded.

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