Glosslab’s Bankruptcy Filing Highlights Challenges in NYC’s Beauty Industry

Glosslab, a once-prominent chain of Manhattan nail salons known for its celebrity investors, has filed for Chapter 11 bankruptcy protection. The company, which had attracted $20 million in investments from figures like Olivia Culpo and The Chainsmokers, cited financial difficulties and unpaid rents across multiple locations as primary reasons for the filing.

Founded in 2018 by Rachel Apfel Glass, Glosslab aimed to revolutionize the nail salon experience with a membership-based model and heightened hygiene standards. At its peak, the chain operated 21 locations and had plans to expand to 65. However, the company now maintains only two salons in Manhattan.

The bankruptcy filing follows reports of operational challenges, including allegations of mismanagement and the employment of unlicensed technicians. Additionally, a legal dispute with Joshua Coba, founder of European Wax Center, further complicated the company’s financial standing.

Despite these setbacks, Glass is seeking to sell Glosslab to VD Brand Holdings, a move that could alleviate some creditor pressures and potentially preserve over 50 jobs. The outcome of this proposed sale remains uncertain as the company navigates the bankruptcy process.

Glosslab’s situation underscores the competitive and often volatile nature of New York City’s beauty industry, where high operating costs and stringent regulations pose significant challenges to business sustainability.