CAROL'S DAUGHTER COMPANIES FILE FOR BANKRUPTCY
Carol's Daughter, known for its natural beauty products for over 20 years, has filed for Chapter 11 bankruptcy protection Thursday. The filing came shortly after the company closed two of seven of its stores and terminated 29 of its 42 employees.
CD Stores LLC, formerly known as Carol's Daughter Stores LLC, filed it's Chapter 11 petition with the Manhattan bankruptcy court, as did the individual companies behind the Carol's Daughter stores. Joining CD Stores in Chapter 11 were such affiliated companies as CD Store Atlantic Terminal LLC and CD Store Roosevelt Field LLC, which respectively share addresses with Carol’s Daughter stores in Brooklyn and Garden City, N.Y. CD Stores parent company, Carol's Daughter Holdings LLC, which owns 100% of the company, did not file for bankruptcy. The petition reports assets and debts each in the $1 million to $10 million range and was signed by Carol's Daughter CFO John D. Elmer.
In court papers, Elmer claims most Carol's Daughter stores have have been unprofitable since 2010. The company is hoping to reorganize and consolidate its operations around its two open stores in Brooklyn and Harlem. Carol's Daughter products are also sold through its website and through third party retailers such as Home Shopping Network, Sephora and Target. In fact, according to Richard Dantas, Chief executive of Carol's Daughter, the Carol's Daughter products are available in more than 2,000 other retail stores around the U.S. Dantas says the company is refocusing its distribution strategy to focus on these retailers.