Friday, April 25, 2014

Say What Now? Natural Hair/Beauty Co. "Carole's Daughter", affiliates file for Bankruptcy

Sooo..having learned Bankruptcy Law while acquiring my Paralegal Degree..I do know there are Chapters, folks of Bankruptcy, so lets not get all bent out of shape over the latest headlines about Natural Hair Diva Ms. Lisa Price's company, "Carole's Daughter" and the term "Bankruptcy"...seems the business is doing some reorganization and need an injection of cash if anything. I thought I heard not too long ago that she handed the company over to be managed by someone else..hmmm, we'll have to find that info and get back! ...Here's the Deets:


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.
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, Mr. Elmer said 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. It hopes to use its time in Chapter 11 to reorganize and consolidate its operations around its two open stores, in Brooklyn and Harlem. Besides the stores, Carol’s Daughter products are offered for sale on its website and through such third parties as the Home Shopping Network and Sephora.

In fact, Carol’s Daughter products are now available in more than 2,000 other retail stores around the U.S., according to Richard Dantas, chief executive of Carol’s Daughter. He said  that the company is refocusing its distribution strategy to focus on these retailers.

Founded in 1993 by Lisa Price (the eponymous Carol’s daughter), the chain makes hair, body and skincare products with natural ingredients, with a special focus on products for African-American women. The line has enjoyed financial backing in the past from such celebrities as Will Smith, Jada Pinkett Smith and Jay Z and was featured on Oprah.

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