The news of companies affiliated with Carol’s Daughter filing for bankruptcy has been burning a trail through the hair world. Without being too technical Chapter 11 bankruptcy simply means that the company is taking some time to look at their financials without debtors beating down their doors and will reorganize in an effort to remain in business or close all together. Carol’s Daughter has closed five of its seven stores and also they have let go of quite a few employees during this time.
I was very sad when I saw this but only because bankruptcy has thick air of negativity to it and it creates negative media attention. I should know better thought because I have worked in the financial industry for a long time and I have seen quite a few companies go under but never actually disappear after filing chapter 11.
They come back either with a new name, under new management or just starting from scratch again. With that said chapter 11 is not the be all and end all, it can be, if that is what the company decides, but it also can allow a company to reassess some things that need to be looked at critically.
We have followed Lisa’s journey for a long time, she is always positive always talking about her family and has been pretty open on social media about her life and business, not to mention she works extremely hard on her brand.
Her products have come under scrutiny sometimes though, either because they are too expensive or just not as accessible as you would want them to be, but we really have not heard much negativity about the quality which is a great thing.
As a product manufacturer you know that if you use high quality ingredients you of course have to pay a lot to create them, that cost is then passed to the customer who can either decide if they can afford it or they cant. It really is that simple, so personally I do not have a problem with the prices as long as I am getting a quality product that lasts.
Bankruptcy always breeds speculation and some blogs are calling her business a failure claiming that she was not diverse enough, in other words she didn’t get women who are dark enough to endorse the products and the hair types were not kinky enough. Lisa was accused of having ads that were too European and maybe that is what partly contributed to her ‘failure’.
*News Flash* we aren’t all that fickle, if Alek Wek woke up this morning and said “Hey world, I used Mimosa Honey on my TWA and I love it’ it doesn’t mean I am going to run to the nearest Carol’s Daughter store and buy up a bunch of them even though I like Alek.