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The encyclopedia · Strategy & Leadership · Strategic decision · 2018

Deciem's founder shut down The Ordinary on Instagram — a court removed him in 10 days

Brandon Truaxe announced Deciem was closing, fired the CFO publicly, and alleged criminal activity. Estée Lauder got an injunction. Stores reopened.

Deciem · The Ordinary · Estée Lauder · 2018-10

What happened

Deciem, founded in Toronto in 2013, built a cult following around The Ordinary, a skincare line known for clinical formulations at low prices. Estée Lauder invested in 2017, acquiring a 28% stake. By 2018, founder Brandon Truaxe had fired the entire US team, published an open letter alleging shareholder financial wrongdoing, and left Sephora.

In October 2018, Truaxe posted an Instagram video announcing that Deciem would shut down all operations for about two months. He alleged that almost everyone at the company had been involved in major criminal activity, publicly fired the CFO, and threatened to release employees' private messages. Deciem's website became a blank red page. Retail partners stopped carrying the brand.

Estée Lauder sought an injunction from the Ontario Superior Court of Justice. Within ten days of the shutdown announcement, a judge removed Truaxe as CEO and board member and appointed co-CEO Nicola Kilner as sole interim CEO. All stores, offices, factories, and warehouses reopened. Truaxe's posts were deleted from Deciem's account.

Why it happened

  • The founder treated the company's social-media accounts as a personal channel, and the shutdown announcement was made to customers and employees simultaneously, with no board approval.
  • Estée Lauder's 28% minority stake gave it no operational control, so the only way to stop the shutdown was through the courts — a governance gap that left the company exposed for days.
  • The pattern of erratic decisions through 2018 — firing the US team, leaving Sephora, publishing allegations — eroded internal and partner confidence before the final crisis.
What it costFounder removed; temporary shutdown; partner trust lostembarrassing

The lesson

A founder's social-media account is not a corporate communications channel — when one person can shut a company down with a post, the governance structure has already failed.

Aftermath

Nicola Kilner led Deciem as sole CEO. The Ordinary continued to grow and became one of the most popular skincare brands globally. Estée Lauder increased its stake over time. Truaxe was acknowledged as the founder but had no further operational role.

Sources

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