Carol’s Daughter body and skin care products has filed for Chapter 11 bankruptcy protection, reported The Wall Street Journal.
Founded in 1993 Fort Greene by Lisa Price, Carol’s Daughter was one of the first natural body care brands focusing on African-American skin care and natural hair.
The line grew so popular so fast, it was featured on Oprah, received financial support from such celebrities as Will Smith, Jada Pinkett Smith and Jay Z and eventually was picked up by Sephora and also sold on the Home Shopping Network. Solange Knowles, Selita Ebanks and singer Cassie also have served as spokespersons.
However, on Thursday, CD Stores LLC, formerly known as Carol’s Daughter Stores LLC, filed its Chapter 11 petition with the Manhattan bankruptcy court, as did the individual companies behind Carol’s Daughter stores.
Court papers show that CD Stores is 100% owned by parent company Carol’s Daughter Holdings LLC (the parent company didn’t file for bankruptcy). And the petition, which reported assets and debts each in the $1 million to $10 million range, was signed by Carol’s Daughter Chief Financial Officer John D. Elmer.
In new court papers filed Thursday afternoon, Elmer said most Carol’s Daughter stores have not been profitable since 2010. Before the bankruptcy filing, the company closed all but two of its seven stores and terminated 29 of its 42 employees.
It hopes to use its time in Chapter 11 to reorganize and consolidate its operations around its two open stores, in the Atlantic Center in Brooklyn and Harlem.