The natural hair movement is booming but Carol’s Daughter isn’t reaping al the rewards.
According to the Wall Street Journal, affiliated brands within the celebrity endorsed empire filed Chapter 11 bankruptcy yesterday (Apr 24) following 5 of the 7 stores closing with only Brooklyn and Harlem, NY stores open.
These proceedings were a long time coming as revealed in court documents filed by the company’s Chief Financial Officer John Elmer stating that most of the stores have been unprofitable since 2010.
“Today’s filing in no way reflects the parent company’s healthy financial situation, and is a part of its plant o grow the brand through national retail outlets,” Chief executive Richard Dantas said on behalf of the company.
Carol’s Daughter Holdings is the brain child of Lisa Price–the store was named after her mother Carol Hutsons–and is the parent company of CD stores LLC. Holdings did not file for Chap. 11 and while there won’t be many physical stores, the product is still retailed in over 2,000 stores nation wide and online.