Well, this isn’t good.
Carol’s Daughter, the popular natural cosmetic line for African-American women, has filed for Chapter 11 bankruptcy.
The filing is in connection with the beauty brand closing most of its stores and laying off 29 of its 42 employees. CD Stores LLC, formerly known as Carol’s Daughters Stores, filed a bankruptcy petition with a Manhattan court. According to court papers, it is 100-percent owned by parent company Carol’s Daughter Holdings LLC and has reported assets and debts each in the $1 million to $10 million range. The parent company, however, 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,” said the company’s chief executive Richard Dantas.
Carol’s Daughter was founded in 1993 by Lisa Price, but was popularized in 2005 when Will Smith, Jada Pinkett-Smith and JAY Z invested $10 million in the then Brooklyn-based line, expanding its reach nationwide. It went on to welcome spokesmodels by the likes of Mary J. Blige, Solange Knowles and Cassie Ventura. Its decline is surprsing considering it was founded with a specialty in natural hair care, a movement that has spiked in recent years.
Price opened her first store in Brooklyn in 1993, after years of making beauty products in her kitchen. Since its expansion to 12 store locations, only its Brooklyn and Harlem locations remain open. Products, however, are still available for purchase on its website and more than 2,000 retailers, as well as third parties such as the Home Shopping Network and Sephora.
The Wall Street Journal reports that Carol’s Daughter Holdings LLC borrowed $3 million for working capital and the expansion of the company’s distribution model. Last year, reports indicated the company was exploring a sale.
(Photos from Left: Paul Taggart/Bloomberg via Getty Images, Carol's Daughter)