Carol’s Daughter bankruptcy filing
A popular haircare line has apparently filed for Chapter 11 bankruptcy. The Wall Street Journal reports that CD Stores LLC, formerly known as Carol’s Daughter Stores LLC, filed for Chapter 11 this week in New York.
Carol’s Daughters Holdings LLC, the parent company of CD Stores, did not file for bankruptcy and is said to be in good financial standing.
Before filing, the company closed all but two of its seven stores, which offer hair, body and skincare products and terminated 29 of its 42 employees. The two remaining CD stores are located in Brooklyn and Harlem.
In the bankruptcy filing, Carol’s Daughter CFO John D. Elmer reported assets and debts each in the $1 million to $10 million range. Elmer adds that Carol’s Daughter’s Stores have been unprofitable since 2010.
The company is said to be focusing on the sales of their products through third-party entities like Sephora.
Carol’s Daughter has been backed by the likes of Solange, Mary J. Blige and Jada Pinkett Smith.