According to the Wall Street Journal, companies affiliated with Carol’s Daughter filed for Chapter 11 bankruptcy protection in connection with the beauty brand’s move to close most of its stores.
The brand’s founder, Lisa Price, created Carol’s Daughter, the popular line of beauty products, including those for hair, skin, hands and fragrances.
The WSJ says:
Court papers show that CD Stores (formerly known as Carol’s Daughter Stores LLC) is 100% owned by parent company Carol’s Daughter Holdings LLC (the parent company didn’t file for bankruptcy). The petition reported assets and debts each in the $1 million to $10 million range.
New court papers were allegedly filed and noted that most Carol’s Daughter stores have been unprofitable since 2010. Before the bankruptcy filing, the company closed all but two of its seven stores and terminated 29 of its 42 employees.
WJF reports that the company hopes to consolidate its operations around its two open stores, in Brooklyn and Harlem.
Several celebrities have supported the 24 year old company, including Will and Jada Pinkett Smith and Jay-Z, who have all provided some sort of financial backing in the past.
Do you think Carol’s Daughter will be able to bounce back?
(Photo Source: PR Photos)