Beauty brand Carol’s Daughter will be acquired by L’Oréal USA, the companies announced this week, about a month after Carol’s Daughter’s retail arm exited Chapter 11 bankruptcy. The price for the acquisition was not disclosed and still requires regulatory approval.
Carol’s Daughter will continue to operate from its New York headquarters under its current leadership team, according to the L’Oréal statement.
CD Stores LLC got bankruptcy court approval of its Chapter 11 plan on Sept. 2. In bankruptcy, the company consolidated retail operations into two stores in Harlem and Brooklyn, New York.
Earlier this year, Lisa Price, the founder, chief executive and daughter of Carol, placed the lagging retail arm of her Carol’s Daughter brand into Chapter 11 bankruptcy to wind-down five of its seven store locations and shore up its balance sheet.
Although the Carol’s Daughter parent company didn’t file for bankruptcy, it agreed to contribute $150,000 to pay attorneys, taxes and other fees as well as to forgive $6.9 million owed by the retail arm to the Carol’s Daughter manufacturing affiliate. Unsecured creditors received between 5% and 10% of the $900,000 they were owed.
Created in 1993, by Lisa Price in began blending body butters, oils and natural fragrances in her Brooklyn home. Price brought the goods to craft fairs and began to sell them. The products sold well and did even better when she added hair care for black women who, like her, wore their hair in its natural, unstraightened state.
Two decades later, Carol’s Daughter has a devoted following among African-American women, caters to a diverse, rapidly growing market, and has established a loyal consumer following across the country.
Carol’s Daughter items now sit on shelves at Target, Sephora and Ulta and are sometimes sold on the Home Shopping Network. Carol’s Daughter earned an estimated $27 million in sales last year and celebrity fans include Jada Pinkett Smith, Will Smith, Jay Z, Gabrielle Union and Mary J. Blige.
Lisa Price, founder and president of Carol’s Daughter, posted the following video on YouTube.