A star-backed chain of Manhattan nail salons — which raised alarms after The Publish solely reported about its failure to pay hire — has filed for chapter, in accordance with a courtroom submitting.
Glosslab — which had raised $20 million from buyers that included mannequin Olivia Culpo, musicians in The Chainsmokers, retired Knicks star Amar’e Stoudemire and Detroit Lions quarterback Jared Goff — sought Chapter 11 safety in New York on Monday.
The submitting comes months after a collection of stories by The Publish about Glosslab and its founder Rachel Apfel Glass, the chief government and former hedge fund supervisor.
Firm insiders instructed The Publish that Glass oversaw an operation that was mired in chaos and undisciplined spending.
Glosslab shut down two of its Manhattan salons after embarking on a failed growth spree and was affected by a money scarcity that left it unable to pay hire on a few of its roughly 20 different places, The Publish reported.
In its submitting, the corporate cited The Publish’s protection of its monetary difficulties this previous spring in addition to an ongoing authorized dispute with Joshua Coba, the founding father of European Wax Middle who lent cash to the chain.
In response to Glass, she began contacting buyers searching for to generate extra infusions of money into the enterprise or to discover promoting the corporate.
However The Publish’s articles about turmoil on the firm prompted would-be stakeholders to get chilly ft, she alleged within the chapter submitting, which was first cited by Bloomberg Information.
Buyers who had expressed curiosity within the enterprise “would no longer entertain partnering in any way, noting the damage to the brand resulting from the litigation and the NY Post article,” Glass mentioned within the courtroom submitting.
The Publish has sought remark from Glosslab.
Glass is presently within the means of making an attempt to promote the corporate to VD Model Holdings, in accordance with the submitting.
If the sale is accredited, it could present reduction to some collectors and permit the corporate to proceed to make use of greater than 50 staff, in accordance with Glass.
Based in 2018, Glosslab deliberate to go from 21 places in New York, New Jersey, Connecticut and Texas to 65 places within the subsequent few years.
The one two places that presently stay in operation are within the Manhattan sections of Flatiron and Tribeca.
A spokesperson for Glosslab mentioned in March that former workers’ allegations that Glass was “hands off” and “absentee” have been “a very inaccurate characterization” of the chief.
Glosslab additionally denied claims by a former worker who alleged that it employed underqualified and unlicensed technicians who saved their jobs regardless of mishaps and issues raised by clients, workers and metropolis inspectors.
A Glosslab spokesperson instructed The Publish earlier this 12 months that “all of Glosslab’s technicians are licensed,” and that, “As is common practice in the industry, Glosslab offers free services to correct manicures if a customer isn’t satisfied.”
