[REACTIONS] Beauty Business Boss Moves: L’Oreal Acquires Carol’s Daughter

Consumers respond to news with mixed emotions, from cheers to disappointment

(Image: File)
(Image: File)

L’Oreal USA announced today via a statement that they have finalized an agreement to acquire Carol’s Daughter.

This news comes after the company recently announced filing bankruptcy.

Founded by natural haircare entrepreneur Lisa Price, Carol’s Daughter offers products available at specialty beauty stores, mass retailers, on HSN, through e-commerce and at branded locations in New York City. For the 12 months ending Sept. 30, the company had net sales of $27 million.

“Carol’s Daughter possesses an expertise in the multi-cultural consumer segment, a rapidly expanding market that represents an important growth opportunity in the beauty industry,” Frederic Roze, president and CEO of L’Oreal USA, said in a statement. “This acquisition will enable L’Oreal USA to build a new dedicated multi-cultural beauty division as part of our Consumer Products business, and strengthen the company’s position in this dynamic market.”

Carol’s Daughter will continue to operate out of their New York City headquarters under the brand’s current leadership team, the statement indicated. The brand joins L’Oreal’s roster of American brands which includes Maybelline NY, Kiehl’s, Essie, Urban Decay, Clarisonic and NYX.

WATCH more about her journey on Black Enterprise Business Report:


“I have worked hard for the past 21 years nurturing my brand and am thrilled that we will have a new home with L’Oreal USA,” said Lisa Price, founder and president of Carol’s Daughter. “L’Oreal has a proven track record of helping established companies achieve their full potential while staying true to the core of the brand and they have an understanding of the future of multi-cultural beauty. I could not be more proud to begin this next chapter of the Carol’s Daughter brand with them. I know that my mother (Carol) is smiling as well.”

Price started her business as a hobby in her New York City apartment, and began selling what would become a huge haircare brand at church flea markets. The products would become a major force in the widespread popularity of women of color embracing their natural hair, and the company soon expanded into four storefronts. Named after her mother, the brand would gain a loyal following among everyday women and celebrities alike, with record exec Steve Stoute having assembled a star-studded list of investors including Jay Z and Will and Jada Smith. Carol’s Daughter expanded further into retail stores including Macy’s and Target, making it the multimillion-dollar empire it is today.

Upon hearing the news some consumers and industry watchers expressed their congratulations, while others had mixed feelings or expressed utter disappointment. Check out a few reactions from social media on the news of the acquisition:

What are your thoughts on L’Oreal’s acquisition of Carol’s Daughter? Follow @BlackEnterprise and #Soundoff on Twitter or leave your comments below.

19 Responses to [REACTIONS] Beauty Business Boss Moves: L’Oreal Acquires Carol’s Daughter

  1. Pingback: Carol’s Daughter is purchased by L’Oréal | Lady Like You

  2. the.sun.will.come.out.tomorrow says:

    It is a little disappointing, but if this was done as a necessity I totally understand. My biggest concern is whether or not Loreal will leave the current formula alone or will they change it. I don’t like Loreal products because they are too perfumey for my taste. I hope they don’t do this to Carols Daughters.

  3. Trezanay M. Atkins says:

    This is a win-win-lose situation. I explain on my site, “brands. blogs. business.” —-> wp.me/p1W0r0-6e.

  4. Black people still have a suicidal self-hating mentality that it ain’t right if it ain’t owned by whites. No confidence in anything Black people build and own for themselves. {{-_-}}

  5. Rodney Anthony Bell says:

    THe article also fails to mention that Carol’s Daughter filed for bankruptcy. Before the bankruptcy filing, the company closed all but two of its seven stores and terminated 29 of its 42 employees. The company was about to go under. It was likely her only option.

  6. Christine says:

    I think Lisa Price lost a HUGE customer base when she phased out the majority of the bath and body line. This article fails to mention that the brand was started with the bath and body line and there were very few hair care products at all. To start out primarily with one line of products and totally swing the pendulum to the other side without consideration for the loyal customer base for the beginning was a poorly constructed move, in my opinion.

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  9. Ann_yo_soy says:

    I understand feelings from both sides…business and community. In my opinion a win- win-win is that Loreal acquires a product line for an ethnic market, Lisa Price comes out of a financial challenge, (I hope she was given stock) and lastly for the third win if she negotiated a social responsibility element that requires that Loreal permanently support the black community in some manner i.e. Scholarships, internships, or support to black owned distributors etc..

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