Joel R. Glucksman
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CD 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.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
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