Forbes does a follow up on last year's announcement that Steve Stoute was gathering celeb investors together to invest in Carol's Daughter, a cosmetics company with which he has become closely involved. In fact, though he is described as having "half the business", the Forbes article presents him as the defacto owner and founder Lisa Price as the "back-story".
Making Music In The Beauty Aisle:
"After five months of negotiations, Stoute ponied up a reported $1 million for half the business. . . he recruited Clarisa Wilson, a vice president at L'Oreal USA who had managed a hair-care line called Mizani, aimed at African American women. Combing through reams of sales data, Stoute and Wilson whittled Carol's catalogue to a manageable 185 products."
"As for distribution, Stoute settled on a three-pronged attack: national chains, his own stores and the Internet. In February, Stoute inked a deal with Sephora, which now carries Carol's in 28 stores. Now he plans to take on $15 million in debt to build 20 Carol's stores--to go with his flagship store in Harlem and another in Brooklyn--in seven states on the east coast over the next three years."
"Other operating capital will come from friends Will Smith . . . his wife Jada Pinkett Smith, Interscope chief Jimmy Iovine, former Sony . . . music chief Tommy Mottola and, of course, Jay-Z--all of whom have invested a combined $10 million in exchange for 30% of the company's equity. (Price stays involved, providing a back-story a la Estee Lauder, another outfit that started on someone's stovetop.)"
There's also an accompanying slide show of Stoute's Greatest Marketing Hits accessible via the article.
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