Carol’s Daughter Companies File for Bankruptcy

Companies affiliated with beauty brand Carol’s Daughter filed for Chapter 11 bankruptcy protection Thursday.

CD Stores LLC, formerly known as Carol’s Daughter Stores LLC, filed its Chapter 11 petition with the Manhattan bankruptcy court. Court papers show that CD Stores is 100% owned by Carol’s Daughter Holdings LLC. And the petition, which reported assets and debts each in the $1 million to $10 million range, was signed by Carol’s Daughter Chief Financial Officer John D. Elmer.

A Carol’s Daughter representative and the company’s bankruptcy attorney couldn’t immediately be reached for comment Thursday afternoon.

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.

Founded in 1993 by Lisa Price (the eponymous Carol’s daughter), the chain makes hair, body and skincare products with natural ingredients, with a special focus on products for African-American women. The line has enjoyed financial backing in the past from such celebrities as Will Smith, Jada Pinkett Smith and Jay Z and was featured on Oprah.

Carol’s Daughter is a portfolio company of private equity firm Pegasus Capital Advisors LP, according to its website. A Pegasus spokesman wasn’t immediately available to comment.

ABL Advisor, an online trade publication for asset-based lenders, reported Tuesday that Carol’s Daughter Holdings LLC borrowed a $3 million senior secured revolving credit facility from Siena Lending Group LLC for working capital and the expansion of the company’s distribution model. A Siena representative wasn’t immediately available to comment.

Last year, Reuters reported that Carol’s Daughter was exploring a sale.

Write to Jacqueline Palank at [email protected]. Follow her on Twitter at @PalankJ.