Posh nail salon Glosslab – whose investors include former Miss Universe Olivia Culpo, ex-Tinder CEO Sean Rad and The Chainsmokers — is closing stores and skipping rent at multiple locations as an aggressive expansion plan has run into trouble, The Post has learned.
Last yr, founder Rachel Glass — a former hedge-fund executive who began the chain in 2018, opening two salons within the Flatiron District and West Village — told Fox Business the corporate had raised “roughly $20 million” and opened 21 locations across Connecticut, Florida, Maryland, Latest Jersey, Latest York, Texas and Washington, DC.
A number of months later in May 2023, Glass said in an interview on LinkedIn that she was aiming for 40 salons as she looked to disrupt a distinct segment dominated by mom-and-pops. Her membership-based business model and water-free, hygiene-focused treatments have been widely covered in the style press, including Elle, InStyle and The Post.
But this week, a scan of the corporate’s website shows that there are only 14 locations within the Latest York City metro area, Miami and Dallas, with one other six listed as “coming soon.”
Meanwhile, a retail space at 401 Third Ave. in Manhattan’s upscale Murray Hill neighborhood displayed a public notice from its landlord alleging that Glosslab owes it $146,542 in back rent. The owner, the Olnick Organization, demanded that Glosslab “give up” the premises and pay up by March 21.
Glosslab had been working on the space but had never moved in and recently had stopped renovations, based on tenants who live within the residential constructing above the retail space.
The Olnick Organization didn’t immediately reply to requests for comment.
A number of blocks across town at 49-51 W. twenty third St. in the fashionable Chelsea neighborhood, one other landlord sued the Glosslab last month, alleging that it’s owed $114,893 for rent and costs since Glass signed a lease for a second floor space on June 29, based on a lawsuit filed in state Supreme Court. Glosslab vacated the premises on Feb. 1, based on the criticism.
In Connecticut, a landlord sued in October to evict Glosslab from the Darien Commons shopping mall for failing to pay its rent for several months last yr, listing Glass because the tenant, based on court documents.
A month later, Glosslab’s Hoboken, NJ location sent an email to clients saying it was closed “for the foreseeable future,” based on a report by Hoboken Girl.
“As we shift our focus towards franchising, we’ve got decided that is one of the best course of motion for our business,” Glosslab told its Hoboken customers.
Glass confirmed in an email to The Post that the Darien and Murray Hill locations had never opened.
Some of the Glosslab locations, meanwhile, are operated by franchisees, including a salon in Closter, NJ which opened in December, an worker told The Post.
“We’re currently moving to a franchise model and dealing with landlords to that effect,” Glass wrote in an emailed response to an initial query concerning the 401 Third Ave. location in Latest York.
Glass didn’t reply to subsequent queries from The Post.
An actual estate executive with knowledge of the situation who didn’t need to be identified said it appeared that Glosslab “ran out of working capital.”
“You don’t fiddle with these Latest York landlords,” the true estate executive added. “They’ll have you ever in court in a minute.”
One other source with knowledge of Glosslab’s troubles said the corporate has had difficulty hiring licensed nail technicians. Latest York state law requires a 250-hour approved course and successful completion of each a written and practical exam.
“Some of these places would open, but had trouble staffing them,” the source said.
Last yr, Glosslab announced that Joshua Coba co-founder of European Wax Center — an almost $1 billion publicly held company with 1,000 locations — secured the franchise rights for Glosslab in South Florida and that Coba is “overseeing” Glosslab’s franchise development nationwide.
A spokesperson for European Wax Center said the corporate just isn’t affiliated with Glosslab.
While Glosslab has previously touted its “hundreds of members,” customers have complained concerning the difficulty of canceling a Glosslab membership.
The sleek salons offer memberships for about $135 monthly for unlimited manicures and pedicures.
“At this point I feel just like the Founding Membership is a predatory pricing practice designed to make customers spend money without getting a product in return,” wrote one customer on the Higher Business Bureau website.
Glosslab has likewise drawn negative reviews from customers on Yelp, with 97 of 241 clients giving it one star out of five.
“You’re treated like cattle – get ’em in, get ’em out in 30-45 min SHARP,” one customer wrote.
“I got gel three days ago and three nails are already breaking and the polish of 4 nails is peeling,” one other fumed.
Glass, 43, raised over $3 million in December 2020 from investors including Tinder co-founder Rad and MJ Bas, co-founder of LAB Capital Advisors.
Five months later, she raised one other $7 million from NFL great Mark Sanchez, Patrick Schwarzenegger, Michael Dubin, the founder of Dollar Shave Club; and Alex Pall and Drew Taggart of the electronic music duo The Chainsmokers, based on Fox Business.
Along with Culpo, Glosslab’s other celebrity investors include singer Keke Palmer and rapper Lil Yachty
“For years I had talked about recreating the nail space, and after I left the hedge fund world, began researching the industry and even attending nail technician school, in an effort to get under the hood of the business from all sides,” Glass told LinkedIn.
“I talked to as many individuals as I could and spent an important deal of time researching the industry usually,” she added.