Beauty retailer Carol's Daughter has filed for Chapter 11 bankruptcy protection and closed down most of its freestanding stores.
Most Carol's Daughter stores have been unprofitable since 2010, according to court documents filed in Manhattan by the company's CFO John Elmer. The only stores that will remain open are those located in Brooklyn and Harlem.
Court documents show the company has reported assets and debts each in the $1 million to $10 million range, reports the Wall Street Journal.
Carol's Daughter products will continue to be sold through the company's website and in over 2,000 retail stores, including Sephora, Macy's (NYSE: M) and Target (NYSE: TGT). Looking ahead, the company says it plans to work more closely with its retail partners to expand the business and drive sales.
In a statement released Thursday, Carol's Daughter CEO Richard Dantas said the bankruptcy filing is more of a positive than a negative for the parent company.
"Today's filing in no way reflects the parent company's healthy financial situation, and is a part of its plan to grow the brand through national retail outlets," he stated.
Carol's Daughter was founded in 1993 by Lisa Price and features hair and skin products as well as various fragrances.
Bankruptcy filings have become common in recent months as merchants face higher competition with online shopping and highly demanding consumers. Carol's Daughter would be the seventh major retailer affected by bankruptcy this year, behind Coldwater Creek, Brookstone, Quiznos, Sbarro, Dots and Loehmann's amid sluggish consumer spending.
-See this Wall Street Journal article
Dots approved for bankruptcy auction
Dots files for Chapter 11 bankruptcy, closes 30 stores
Loehmann's announces closure of all stores
Loehmann's assets, leases sold at auction
Why T.J. Maxx, Marshalls thrive as Loehmann's goes bankrupt