Friday, April 25, 2014
Carol's Daughter Stores File For Bankruptcy, Closes Most Locations
Didn't see this one coming. According to Centric.com, 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.