The celebrity-backed Manhattan nail salon chain, which was put on alert after the newspaper exclusively reported on rent arrears, has filed for bankruptcy, according to court filings.
Grosslove, who has raised $20 million from investors including model Olivia Culpo, musicians from The Chainsmokers, former Knicks star Ammar Stoudemire and Detroit Lions quarterback Jared Goff, announced Monday in New York sought Chapter 11 protection.
Filing is coming This comes several months after a series of reports by the Post about Glosslab and its founder, CEO, and former hedge fund manager Rachel Apfel Glass.
Company insiders told the Post that Mr. Glass oversaw a business that descended into chaos and undisciplined spending.
After embarking on a failed expansion plan, Glosslove closed two of its Manhattan salons and ran out of cash to pay rent on some of its other 20 or so locations, the Post reported.
In its filing, the company cited the Post's reporting on the chain's financial troubles this spring and its ongoing legal dispute with European Wax Center founder Joshua Koba, who lent money to the chain. Mentioned.
Glass said she has begun contacting investors looking to inject additional capital into the business or sell the company.
But the Post's coverage of the company's turmoil left potential stakeholders cold, she argued in her initial bankruptcy filing. Quoted by Bloomberg News.
In a court filing, Mr. Glass said investors interested in the business “bear in mind the damage to the brand caused by the lawsuit and the New York Post article, and do not intend to collaborate in any way going forward.” I'm not going to enjoy it.”
The Post has reached out to Glosslab for comment.
According to the filing, Glass is currently considering selling the company to VD Brand Holdings.
If the sale is approved, it will relieve some creditors and allow the company to continue employing more than 50 employees, Glass said.
Founded in 2018, Glosslab planned to expand from 21 locations in New York, New Jersey, Connecticut, and Texas to 65 locations over the next few years.
Currently, only two locations in Manhattan remain open: in the Flatiron and Tribeca neighborhoods.
A Gloss Lab spokesperson said in March that former employees' claims that Glass was “hands-off” and “absent” were a “grossly inaccurate portrayal” of the company's executives. Ta.
Grosslove also denied former employees' claims that the company hired unqualified, unlicensed technicians and continued to work despite incidents and concerns raised by customers, employees and city inspectors. .
“All Glosslab technicians are licensed,” a Glosslab spokesperson told the Post earlier this year, adding, “As is common practice in the industry, if a customer is not satisfied, Glosslab will touch up the manicure free of charge.” We are providing a service.”
