In a move to close most of its retail stores, CD Stores LLC, formerly known as Carol’s Daughter Stores LLC, filed a petition for Chapter 11 Bankruptcy protection with the Manhattan bankruptcy court on Thursday.
Court papers show CD Stores is 100% owned by parent company Carol’s Daughter Holdings LLC which did not file for bankruptcy protection. The petition reported assets and debts between $1 million to $10 million dollar range.
Most of the retail stores have been unprofitable since 2010 and all but two out of the seven were closed before the filing, terminating 29 of its 42 employees.
The products are still offered for sale on its website as well as third-party outlets such as: Home Shopping Network, Sephora and 2000 other retail outlets throughout the US.
They are hoping to use its time in Chapter 11 to reorganize and consolidate its operations around its two open stores in Brooklyn and Harlem.
The company makes hair, body and skincare products from natural ingredients. It was founded in 1993 by Lisa Price and received financial backing from several celebrities including, Jay Z, Will & Jada Smith and Mary J. Blige.