Adore Beauty might be busy opening stores, but behind the glossy shopfronts, some of the cosmetics industry's biggest players are asking: where's their money?

Some suppliers claim they have been left chasing thousands of dollars in unpaid invoices, with one brand owner alleging the retailer owes them $40,000 while continuing to place orders for more stock.

'They stopped paying us months ago and no one responds to daily emails asking them to pay their bills,' the supplier, who did not wish to be named, told the Daily Mail.

'They keep placing purchase orders for stock, though. We've had to stop sending stock until they pay their bills. They owe me $40,000 and no one responds.'

Another brand alleged Adore wasn't paying invoices on time, claiming attempts to chase the outstanding bills had become increasingly difficult because 'all my contacts there had disappeared'.

Eventually, this supplier claims they reached someone at Adore who explained that 'there was a bottleneck of invoices due to a transition to a new system'.

The Daily Mail is not suggesting that Adore Beauty is trying to avoid paying its bills, only that some suppliers are complaining about delays and that these delays have reportedly been attributed to administrative issues.

The claims come as Adore Beauty, an ASX-listed retailer valued at around $25million, continues its push into physical retail with the opening of its 16th store.

But while the company is busy rolling out the welcome mat for shoppers, industry insiders have raised questions about its financial health.

'There are rumours of substantial debt,' one source said, adding that Adore Beauty's spending did not appear to have slowed during its rapid expansion.

Against that backdrop, the company told investors in a June 29 ASX announcement that it had refinanced and expanded its banking facilities with Commonwealth Bank, lifting total available funding from $18.2million to $25.2million.

The company said the additional funding would provide flexibility to meet working-capital requirements as it nears the end of a major investment cycle and expands its national retail footprint.

It comes as the retailer was hit by waves of staff redundancies over the past two years, as businesses across the country increasingly turn to artificial intelligence and look for ways to cut costs.

Adore Beauty, which sells everything from cosmetics and skincare to haircare and fragrances, was founded as an online store in 2000 by James Height and Kate Morris, both of whom stepped down from executive duties in 2023 but remain on the board.

For years, the business built its reputation online, offering beauty obsessives access to hundreds of brands without having to leave the couch.

After its successful online launch, Adore embarked on an ambitious bricks-and-mortar expansion that has seen the retailer move well beyond its digital roots.

The latest opening is at Melbourne Central, where chief executive Sacha Laing has pitched the new store as the next chapter in the company's evolution. 

'Melbourne Central represents the next evolution of Adore Beauty: a store built around our obsession with formulas, results, exceptional service and expert advice,' Laing told Online Retail.

'Our customers have always trusted us to curate, educate, and bring genuine beauty solutions in what can feel like an infinite supply of information in an overwhelming beauty market.

'This flagship brings that expertise to life, with an advanced treatment menu, expert dermal therapists, beauty advisors, and a curated range of more than 150 brands in the heart of Melbourne.'

The opening follows stores in Kotara, Parramatta, Robina and Hurstville, with further locations planned for Miranda and Karrinyup before the end of the year.

Adore Beauty has previously outlined plans to open 25 physical stores over three years, taking on Sephora's Australian network of 33 stores and Mecca's roughly 100.

The company has also said its combined network, including Ikou stores, is expected to reach 25 locations by the end of the year.

For Laing, who joined the business in September 2024, the expansion is a significant part of the retailer's next phase.

He arrived with more than 25 years' experience across physical, online and wholesale retail, having previously served as group chief executive and director of private equity-backed Alquemie Group, whose portfolio includes Lego, Ginger & Smart and SurfStitch.

Before that, he led General Pants Co and held executive positions at Country Road Group and David Jones.

But as Adore Beauty continues to invest in its physical footprint, suppliers' claims raise questions about whether the business is keeping pace with its obligations behind the scenes.