The Black Chandelier stores at Fashion Place mall in Murray and the Shops at Riverwoods in Provo are closing.
The two stores are the newest in the four-store chain.
Black Chandelier's parent company Nexia Holdings Inc., a subsidiary of Gold Fusion Laboratories Inc., was unable to raise sufficient capital to properly stock all the locations and sales suffered. About 20 people will lose their jobs, Nexia said in a news release this week.
Black Chandelier will ship merchandise from the closed stores to the remaining stores and will save $50,000 in negative cash flow per month.
Nexia, a Salt Lake City-based health, beauty, fashion and real-estate company, had attempted to raise up to $10 million in an equity line of credit but was unable to get the registration statement cleared through the Securities and Exchange Commission for more than 20 months. Management did not expect the process to take longer than six months.
However, Nexia's chief executive officer Richard Surber said once the registration statement clears, the company will use funds to open stores in Southern California, which "has a consumer demographic that may be more receptive to our products."