There have been varying opinions about L’Oreal’s acquisition of Carol’s Daughter. Many of their supporters are concerned that the brand will be diluted. Others feel betrayed that Lisa Price (owner and CEO) has allowed money to drive her decision, without considering the broader impact. In either case, it’s worth taking a moment to explore the situation.
Lisa Price started creating natural hair products in her kitchen in 1993. Her business has evolved, with revenue from last year totaling $27 million. They’ve become a house hold name and have done an outstanding job creating a brand that speaks to the needs of women who desire natural hair products. Without getting into a debate about Ms. Price’s decision, we (her supporters) should applaud her innovation and ambition. Invention is the single most impactful contribution to our society. Her ingenuity and determination have paved the way for young, black entrepreneurs around the world.
With very little financial details regarding the acquisition, it’s difficult to create an educated stance on Ms. Price’s decision. I’d like to believe that she leveraged the advisement of her board and other esteemed resources that have the best interest of the company at heart. Based on recent articles, we’re aware that Carol’s Daughter underwent bankruptcy in order to restructure the company which resulted in closing many of their stores. The company has decided to focus on sales through retail channels, such as Target and HSN.
Although Carol’s Daughter is being acquired by L’Oreal, the current leadership team will continue to operate from their New York-based office.
Feel free to read the following reference material for additional context:
http://www.lorealusa.com/press-releases/loreal-usa-signs-agreement-to-acquire-carols-daughter.aspx
http://www.blackenterprise.com/lifestyle/loreal-acquires-carols-daughter/