
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comPartner
201-896-7095 jglucksman@sh-law.comCD Stores LLC, formerly known as Carol’s Daughter Stores LLC, filed for protection under Chapter 11 of the bankruptcy law April 24, according to The Wall Street Journal. The company was joined in filing by the individual companies behind Carol’s Daughter stores. Founded by Lisa Price in 1993, the chain produces skincare, body and hair products using natural ingredients, with a focus on African-American women. Its line has had past financial backing by a number of black celebrities, including Jay Z, Will Smith and Jada Pinkett Smith.
Two days prior, Siena Lending Group LLC announced the completion of a $3 million senior secured revolving credit facility for Carol’s Daughter Holdings, LLC, which owns 100 percent of CD Stores LLC, to support the company’s expansion of its distribution model, according to ABL Advisor.
“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,” said president and CEO of Siena Lending Group David Grende in the announcement.
In court papers filed the afternoon of April 24, Chief Financial Officer of Carol’s Daughter John Elmer explained that most of the company’s stores have been unprofitable for the past four years. In preparation for the filing, CD Stores closed all but two of its stores, and terminated 29 of 42 total employees. Carol’s Daughter hopes to reorganize and consolidate its operations around its two remaining stores, which are located in Brooklyn and Harlem. The company’s products continue to be available via its website and through a number of third parties.
In previous court papers, signed by Mr. Elmer, the company reported assets and liabilities each in the $1 million to $10 million range.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!