LAWTON – The Lawton-based company Cosmetic Specialty Labs, which announced that it had suspended manufacturing, will have another six months to repay its loan from the Comanche County Industrial Development Authority.
The CCIDA voted 6-0 March 21 to approve a deferral agreement with CSL President Jennifer Ellis. The agreement requires CSL to pay the authority $206.517.55 plus interest – calculated at 3% per year – when the company closes on the sale of its property but not later than Sept. 18.
CSL, which makes beauty and skin products, announced in late February that it was suspending manufacturing after 51 years in business. Ellis told KSWO at the time that narrower- than-usual profit margins and a changing regulatory environment had prompted her to take that step.
The CCIDA loaned the company $272,000 in May 2020, which was evidenced by a promissory note and a second mortgage on the company’s property, according to the agreement. The company currently owes the authority $206,517.55 plus interest at the rate of 3% per year.
CSL has fallen behind in its payments over the past three months, said CCIDA’s attorney, Mike Mayhall. He added that he discussed the situation with Ellis, who said the company had not turned a profit in a long time. However, Mayhall said, Ellis reported that another company was considering acquiring the CSL building and setting up shop in Lawton.
“She feels like if this company that she’s dealing with really happens, she says they’re anxious to get going quickly before the equipment – apparently if the equipment just sits there, something happens to it. I don’t know if it rusts or what,” Mayhall said. “She said, ‘I think I can pay you all off. I think it’s possible it would be as quick as a month.’ I said, ‘That would be great.’” Lawton-Fort Sill Economic Development Corp. President Brad Cooksey, who is not a member of the CCIDA, confirmed that another company is interested in buying the CSL property.
“I’m working with that company as we speak, so it is a legitimate deal that could happen,” he said.
Ellis said Friday that she had asked the CCIDA for a short forbearance period, which would give her time to wrap things up as far as selling the business. She added that she does plan to pay off the CCIDA loan.
“We have every intention of making CCIDA whole,” Ellis said.
She added that CCIDA is a strong advocate for area businesses, and she wants to keep them in that position.