Manhattan-based Glosslab has filed for Chapter 11 bankruptcy in New York, following struggles to meet rent obligations at several of its 20 locations, leading to multiple closures.
Reports by The New York Post indicate that discussions are underway for a potential sale to VD Brand Holdings, aiming to design a recovery strategy. Presently, only two locations continue to operate.
The company’s bankruptcy documents blame legal disputes with a creditor and unfavorable media coverage as factors hampering their ability to generate funds needed to stay afloat.