Lisa Price, founder of Carol’s Daughter
New York, NY — Carol’s Daughter Stores LLC, a Black-owned all-natural hair, body and skincare brand, has filed for bankruptcy but the company has not gone out of business. Once endorsed by the likes of Jay-Z, Will Smith, Jada Pinkett and Mary J. Blige, Carol’s Daughter has already closed down most of its stores and laid off more than 50% of their staff. But they are restructuring financially.Two stores – one in Brooklyn and another in Harlem – will remain open, and the products will be continue to be sold in over 2,000 nationwide retail locations including Target and the Home Shopping Network. The web site at CarolsDaughter.com will also continue to sell products.
But according to court papers filed by their CFO, most of Carol’s Daughter stores have been unprofitable since the year 2010. But despite it’s debts of up to $10 million, the company is determined to pursue a new strategy of solely focusing on growing the brand through retail outlets and online.
Carol’s Daughter started as a home business in 1993 by Lisa Price, an African American entrepreneur from Brooklyn, New York. She reportedly starting out by making her products by hand in her kitchen, and selling them at local flea markets. In later years, she was able to convince major investors to get involved. One feature on Oprah, and the company took off almost overnight.
Despite the company’s financial struggles, executives are being positive and feel the company can easily rebound after a reorganization.
One executive of the company commented, “[The] 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.”
And David Grende, President and CEO of Siena Lending Group (a lender to the company), commented, “We are pleased to have the opportunity to help Carol’s Daughter expand its distribution channels and look forward to its future growth and success.”
For more details about Carol’s Daughter, visit www.CarolsDaughter.com