The beauty industry has faced economic issues that the rest of the retail sector has faced over the last two years, which led to business closures and bankruptcy filings.
Various beauty sectors, such as hair salons, spas, cosmetics, and skin and hair products, have battled rising costs of labor and products driven by inflation, rising interest rates on their debts, increased tariff costs, and fierce competition that have caused financial distress.
Many companies have chosen either out-of-court or in-court restructurings to try to solve their problems, such as luxury hair-styling chain Capelli Salon, which filed for Chapter 11 bankruptcy protection to restructure its debts.
Capelli Salon files Chapter 11 bankruptcy
The Dallas-based salon chain’s parent, Capelli Partners LLC, filed its Subchapter V petition in the U.S. Bankruptcy Court for the Northern District of Texas in Fort Worth on May 5, listing $1 million to $10 million in assets and liabilities, according to PacerMonitor…