Carol’s Daughter Stores LLC – a natural hair, body and skincare brand – has been forced to file for bankruptcy.
According to the “Wall Street Journal,” the beauty brand has filed for Chapter 11 on Thursday afternoon and has closed down most of its stores.
Court papers filed by Carol’s Daughter Chief Financial Officer John D. Elmer state that most Carol’s Daughter stores have been unprofitable since 2010.
Prior to filing for bankruptcy, the company closed down five of it’s seven stores and has laid off more than half of its employees. The only stores that will remain open are those located in Brooklyn and Harlem.
Aside from their two physical store locations, Carol’s Daughter products will continue to be sold in over 2,000 retail stores around the nation and through the company’s website.
Going forward, the company will work more closely with these retailers in plans of expanding the business – and in turn, the company’s chief executive Richard Dantas hopes it will create a positive effect on the brand’s parent company. The parent company Carol’s Daughter Holdings LLC, which fully owns CD Stores LLC, did not file for bankruptcy.
“Today’s filing in no way reflects the parent company’s healthy financial situation, and is a part of its plan to grow the brand through national retail outlets,” Mr. Dantas said Thursday in an emailed statement.
Carol’s Daughter was first established in 1993 by Lisa Price — an African-American woman from Brooklyn who built her beauty empire out of her very own kitchen.
Several celebrities have helped to promote the brand, including Will and Jada Pinkett Smith and rapper Jay Z who are all reportedly investors.
For more about Carol’s Daughter and the company’s products, click here.