Carol's Daughter Closes 5 Of 7 Stores In Bankruptcy

[Admin]

Companies affiliated with popular cosmetics supplier Carol’s Daughter filed for chapter 11 bankruptcy protection yesterday, The Wall Street Journal reports. The filing is in connection to the beauty brand’s efforts to close most of its stores.

The petition was filed with the Manhattan bankruptcy courts by CD Stores LLC, formerly known as Carol’s Daughter Stores LLC—in addition to the individual companies behind Carol’s Daughter stores. In the filing, CD Stores, which is 100% owned by parent company Carol’s Daughter Holdings LLC, reported both debts and assets in the $1 to $10 million bracket.

In the court documents, which were filed by the company’s CFO John D. Elmer, it’s revealed that the brand’s physical stores have shown to be unprofitable since 2010. Prior to the filing, the company shut down all except two of its seven store locations and laid off 29 of its 42 store employees.

According to the filing, Carol’s Daughter Holdings LLC hopes that filing for chapter 11 will help the company to “reorganize and consolidate” its operations. The company continues to sell its products from its Harlem and Brooklyn stores, the Carol’s Daughter website and more than 2,000 other retail stores across the nation.


“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 Carol’s Daughter CEO Richard Dantas in an emailed statement.

Are you a fan of their products?

Earlier today, a rep from the company issued this statement, attempting to clarify that Price did not file bankruptcy. Here’s what they said:


“We are happy to report that Carol’s Daughter did not file for bankruptcy. To focus more attention on our third party retailers we made a decision to close five of our seven free-standing retail stores through a bankruptcy process. Our products will continue to be in over 2,000 independent retail outlets nationwide with more exciting launches to come that we can’t wait to share with you.”

C

[Deleted]

Never knew they had their own stores. I get their products on the internet and shopping network.

[beverlygee]

I've only sampled some of their products. Wish them well.