Carol’s Daughter body and skin care products has filed for Chapter 11 bankruptcy protection, reported The Wall Street Journal.
Founded in 1993 Fort Greene by Lisa Price, Carol’s Daughter was one of the first natural body care brands focusing on African-American skin care and natural hair.
However, on Thursday, CD Stores LLC, formerly known as Carols Daughter Stores LLC, filed its Chapter 11 petition with the Manhattan bankruptcy court, as did the individual companies behind Carols Daughter stores.
Court papers show that CD Stores is 100% owned by parent company Carols Daughter Holdings LLC (the parent company didnt file for bankruptcy). And the petition, which reported assets and debts each in the $1 million to $10 million range, was signed by Carols Daughter Chief Financial Officer John D. Elmer.
In new court papers filed Thursday afternoon, Elmer said most Carols Daughter stores have not been profitable 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 the Atlantic Center in Brooklyn and Harlem.
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