Carol's Daughter Sold to L'Oreal USA
Posted on October 24, 2014
L'Oreal USA has bought multicultural beauty brand Carol's Daughter out of bankruptcy. Founder and president Lisa Price will stay with the company.Price worked in television production in the 1980s. While she was working on The Cosby Show she began making her own fragrances in her Brooklyn kitchen. She experimented with new products, including body butters and haircare products for black women who wore their hair naturally as she did. At the urging of her mother Carol, she began selling the products at a local fair. They were a hit and the business took off.
The business expanded and is now sold on HSN, as well as in stores such as Sephora and Ulta. She also opened her own boutiques. But as the natural hair trend took off, so did her competition. The company's sales were slipping and costs were too high. A private equity firm, Pegasus Capital Advisors, L.P., stepped in to help right the company, but eventually, the company was forced to file Chapter 11 bankruptcy in May, 2014. Lisa, who is the president of the company, will remain after the sale. Her name, face and history are a crucial part of the brand that L'Oreal bought. The company will join L'Oreal's other beauty brands which includes NYX, Maybelline NY, Urban Decay, Kiehl's, Essie, and Clarisonic.
Lisa talked about the sale in a video on Youtube. In it she sounds pretty excited that her company is being bought by L'Oreal who she calls "the right Shepherd." She reassures her customers that she will still be the face and soul of the brand saying, "I'm not going anywhere. I couldn't have asked for a better home for my first child, my business." Take a look: