*After 21 years in business, bankruptcy has entered the picture for Carol’s Daughter.
Companies associated with the natural beauty brand filed for Chapter 11 bankruptcy protection in bankruptcy court in Manhattan on Thursday, according to the Wall Street Journal. Among those filing was CD Stores LLC, which reported debts and assets ranging from $1 million to $10 million.
The company, formerly known as Carol’s Daughter Stores LLC, is completely owned by Carol’s Daughter Holdings LLC. In light of the parent company not filing for bankruptcy, products from the brand will still be sold at larger retailers (like Sephora) across the country. In addition, consumers will still find Carol’s Daughter products on the brand’s official website as well as HSN, where they will still be sold.
In a statement released Thursday, Carol’s Daughter Chief Executive Richard Dantas mentioned that the bankruptcy filing is more of a positive than a negative for the parent company.
“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,” he stated.
Founded in 1993 by Lisa Price, Carol’s Daughter features hair and skin products as well as various fragrances. Over the years, the natural beauty brand has received endorsements from celebrities such as Jada Pinkett-Smith, Mary J Blige, Selita Ebanks and Solange Knowles.
Although it projected a successful image, court documents claim that the majority of Carol’s Daughter’s brick-and-mortar stores haven’t been profitable since 2010. Prior to filing for bankruptcy, Carol’s Daughter closed five of its seven shops as well as dismissed 29 of 42 of the employees from those stores.
As it stands now, the WSJ notes that the company hopes to use its time in bankruptcy to reconfigure its operations around its remaining open shops. Price has yet to address her company’s recent actions.