A judge has ordered Adwoa Beauty to file for Chapter 7 bankruptcy, meaning the company must cease operations and turn over its intellectual property and assets to a court-appointed trustee for sale. The beauty brand filed for Chapter 11 protection in October, while its lender, Aurous Financial Services, filed a lawsuit, according to Business of Fashion.
Speaking to BOF, Adwoa Beauty founder Julian Addo said, “For me, conversion at this stage was the best outcome. I fought a really long, hard battle alone, and it just takes too many resources and mental bandwidth to keep that up.”
Adwoa Beauty filing for Chapter 7 bankruptcy
Aurous sued the brand in a New Jersey court in September 2025 for alleged fraud and sought a legal order to seize the brand’s assets. After Adwoa sought Chapter 11 protection in October in the U.S. Bankruptcy Court for the Northern District of Texas, Aurous filed a motion to convert the bankruptcy due to Adwoa’s fundraising efforts, inventory discounting, and financial performance.
Addo has described the lender as “predatory” and told AFROTECH, “The lender is using pressure tactics and money because it costs me money to go into court.”
About Adwoa Beauty
Adwoa Beauty was founded in 2017 by Julian Addo. The brand was backed by Marcy Venture Partners, co-founded by Jay-Z. It focused on providing women with texturized hair with products for scalp health using plant-derived ingredients like baobab oil. Addo is a Liberian-Ghanaian American businesswoman with over 30 years of experience in entrepreneurship.
Image: Adwoa Beauty
Source Name : people of color in tech >
