Consumers of Carol’s Daughter were concerned last week when reports stated that the natural beauty, hair and skincare brand had filed for Chapter 11 bankruptcy.
According to the Wall Street Journal, the company was forced to file for bankruptcy after it closed down five of its seven stores and let go of more than half of its employees. The only stores that will remain open are those located in Brooklyn and Harlem.
In light of their filing, the company will refocus their efforts on expanding their products through a number of retail stores around the nation — and through their website. Carol’s Daughter products are currently sold in over 2,500 stores, including Sephora and Target.
In a statement released Wednesday, Lisa Price, the founder of the company, clarified some of the ongoing confusion concerning the company’s financial situation.
“It is important to set the record straight,” she wrote. “Carol’s Daughter is still going strong after twenty-one years, and the future has never looked brighter. As part of our increased focus on new retail channels, we have decided to close five of our stores. This was portrayed as if we are having some challenges, but nothing could be further from the truth.”
Price originally founded Carol’s Daughter in 1993 out of her apartment kitchen in Brooklyn. It has since expanded into a multi-million dollar beauty company that has recruited big name investors like Will and Jada Pinkett Smith and rapper Jay Z.
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