According to the Wall Street Journal, companies affiliated with Carol’s Daughter filed for Chapter 11 bankruptcy protection Thursday in connection with the beauty brand’s move to close most of its stores.
Carol’s Daughter is a popular line of beauty products, including products for hair, skin, and hands, as well as fragrances. It was designed by Lisa Price, who named the company for her mother, Carol Hutson.
Reportedly, 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 Thursday afternoon 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. Besides the stores, Carol’s Daughter products are offered on its website and through such third parties as the Home Shopping Network and Sephora.
A number of celebrities have co-signed Carol’s Daughter, which was founded in 1993. Big names including Will Smith, Jada Pinkett Smith and Jay Z have provided some financial backing in the past.
Last year, Reuters reported that Carol’s Daughter was exploring a sale. Lisa has yet to provide an official statement.