According to a report in The Wall Street Journal, the urban beauty products brand Carol's Daughter filed for bankruptcy protection from its creditors. Carol's Daughter founder Lisa Price disputes the report.
The Wall Street Journal reports that CD Stores LLC, formerly known as Carol’s Daughter Stores LLC, filed for Chapter 11 bankruptcy in Manhattan bankruptcy court.
CD Stores LLC is wholly owned by parent company Carol’s Daughter Holdings LLC, which didn't file for bankruptcy. The bankruptcy petition, which reported assets and debts in the $1 million to $10 million range, was signed by Carol’s Daughter Chief Financial Officer John D. Elmer.
In a new court filing on Thursday, Mr. Elmer said the company closed all but two of its seven stores and terminated 29 of its 42 employees. But the products are still carried in over 2,000 other retail stores in the U.S.
Elmer said the standalone stores had been profitable until 2010.
Carol's Daughter's benefitted from relationships with celebrities such as Will Smith, Jada Pinkett Smith, Cassie, Mary J Blige, Jay Z, and Solange Knowles. The stars happily promoted the beauty products, and the brand was also featured on Oprah.
Carol's Daughter founder Lisa M. Price sent a personal letter to UPTOWN magazine denying her brand was in trouble.
"Carol's Daughter is still going strong after twenty-one years and the future has never looked brighter," she wrote.