Lost Fortunes: The Wealthy Black Women Who Built Empires Before the Civil Rights Movement—And Where Their Wealth Went (Part 5 of 28, Madam CJ Walker)

"There is no royal flower-strewn path to success. And if there is, I have not found it, for whatever success I have attained has been the result of much hard work and many sleepless nights" - Madam C.J. Walker (Sarah Breedlove)

Among the earliest wealth builders were multi talented and gifted saleswomen and job creators of the18th and 19th Century. Meet Madam C.J. Walker, rising from conditions of abject poverty and enslavement to a businesswoman of economic influence—and how she lost it.

Madam C.J. Walker (born Sarah Breedlove, 1867-1919) was a self-made millionaire, entrepreneur, and philanthropist who revolutionized the Black haircare industry in the early 20th century. Her legacy extends beyond business—she empowered Black women with economic opportunities and advocated for racial and gender equality.

Born in 1867 to formerly enslaved parents in Louisiana, Sarah Breedlove faced extreme poverty, early widowhood, and hard labor as a washerwoman. Her journey to wealth began when she struggled with scalp disorders and hair loss, which were common due to poor hygiene practices and lack of haircare products for Black women.

She experimented with homemade remedies and tried products from entrepreneur Annie Turnbo Malone, one of the first Black haircare moguls. Inspired by her experiences, she developed a special scalp treatment and hair growth formula, which became the foundation of her business.

In the early 1900s, she moved to Denver, Colorado, and officially launched Madam C.J. Walker’s Wonderful Hair Grower, marketing it as a solution for hair growth and scalp health.  She branded herself under the name “Madam C.J. Walker” after marrying Charles Joseph Walker, creating a sense of luxury and credibility in her brand. Her door-to-door sales model allowed her to sell products directly to Black women, demonstrating their effectiveness and building a loyal customer base.

Walker’s business quickly grew, through sales and innovation expanding to Black communities across the U.S. and beyond. She developed a complete hair care system, including shampoos, ointments, and pressing oils. She trained thousands of Black women as sales representatives, creating one of the first national direct-sales networks. She established Lelia College in Pittsburgh and other beauty schools to train women in haircare and business skills.

By 1910, she had built a headquarters and factory in Indianapolis, where she mass-produced her products.

At its peak, Walker’s company generated millions of dollars in revenue, and she became one of the wealthiest self-made women of her time. By 1919, she was worth an estimated $600,000–$1 million ($9–$15 million today). She owned multiple properties, including a mansion in Irvington, New York, known as Villa Lewaro, designed by the first licensed Black architect, Vertner Tandy. She became a philanthropist, donating thousands of dollars to Black colleges, the NAACP, and other social causes.

What Happened to Madam C.J. Walker’s Wealth?

After Walker’s death in 1919, her company continued to operate under family leadership, but it struggled over time. Her daughter, A’Lelia Walker, inherited the company and expanded its presence in Harlem’s social scene, but she lacked the same business acumen. The Great Depression (1929) caused financial strain, as fewer people could afford beauty products. Competition in the haircare industry grew, and other brands began dominating the market. By the 1980s, the Walker Company ceased major operations, though her legacy continued through other Black beauty brands.

Walkers, 34-room mansion, Villa Lewaro, remained in the family for years but was eventually sold. It is now a historic landmark. A’Lelia Walker spent much of the inheritance supporting the Harlem Renaissance but was not able to sustain her mother’s wealth over the long-term.  Without proper business succession planning and economic security, much of her fortune was lost within one generation.

Her Story, Lessons for Businesswomen of Today?

Walker created a scalable business that allowed her to grow and expanded beyond herself, ensuring wealth-building opportunities for others. She is the face of economic empowerment. She gave Black women jobs, financial independence, and career training, creating a community legacy beyond just money. But after her death, the company struggled and eventually faded from the market.

Several factors contributed to this decline, including leadership transitions, economic downturns, and industry competition. If certain strategic decisions had been made, the Walker Company might have sustained its success for generations. This includes stronger succession planning and leadership transition, creating a foundation or trust and board of directors, product diversification into skin and cosmetic lines, and distribution channels with major retailers. Her story serves as both a powerful inspiration and a cautionary tale about building, protecting, and sustaining Black wealth and generational wealth for her descendants over time.

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During this Black History Month, we celebrate the lives of more than 20 extraordinary women. Through their stories, we will explore not only the successes but also the structural forces that have shaped the generational wealth gap in Black America.

This is a financial education series of The New LaVilla. Find us at www.thenewlavilla.com