Lost Fortunes: The Wealthy Black Women Who Built Empires Before the Civil Rights Movement—And Where Their Wealth Went (Part 7 of 28, Annie Turnbo Malone)

“The people here are accomplishing things. The atmosphere is one of commercial striving, endeavor and promise.” – Annie Turnbo Malone

Annie Turnbo Malone

Annie Turnbo Malone was one of the first Black women in the United States to achieve millionaire status through entrepreneurship. She built a haircare empire that empowered thousands of Black women, laying the foundation for the modern Black beauty industry. However, despite her immense success, her wealth and business empire eventually declined. As part of this Black History Month series, we’re retracing how Malone amassed her fortune, the challenges she faced, and what ultimately happened to her wealth.

How Annie Turnbo Malone Acquired Her Wealth

Born in 1869 in Metropolis, Illinois, to formerly enslaved parents. The 10th child of eleven children, Malone had an early interest in chemistry and haircare. Malone is remembered as a quite introvert who was often sickly and missed classes. She did not finish high school but envisioned herself as a "beauty doctor." At a time when Black women had limited haircare options, she developed new products specifically designed for Black hair, setting herself apart from competitors.

By the early 1900s, Malone had created Poro, a brand of haircare and beauty products. Her most famous product was the Poro Hair Grower, a scalp treatment that she marketed as a healthier alternative to chemical straighteners. Her innovation, sales strategy and marketing tactics set her apart. She pioneered non-damaging hair straighteners and shampoos for Black women. Instead of relying on white-owned stores, Malone used a direct sales model, training and employing thousands of Black women as sales agents. She leveraged word-of-mouth, beauty demonstrations, and community networks to grow her business.

Malone moved to St. Louis, Missouri, where she expanded her business into a national empire. In 1918, she built Poro College, a massive facility that served as a manufacturing hub for her products, a training school for Black women in cosmetology and business, a community center for Black professionals and social events. The location employed 175 and created up to 2,000 jobs over time.

As Malone’s fortune grew, she invested in real estate across the U.S. and became a leading philanthropist. She donated millions to Black schools, churches, and organizations, including the NAACP and the Tuskegee Institute, funded orphanages and educational programs for Black children, and owned multiple properties, including a mansion in Chicago.

At its peak, the Poro beauty brand employed over 75,000 agents worldwide, helping many Black women achieve financial independence. At the height of her success, Malone’s net worth was estimated at over $14 million (adjusted for inflation) .

What Happened to Annie Turnbo Malone’s Wealth?

Despite her financial success, Malone faced several challenges that led to the decline of her wealth:

• Divorce Lawsuit (1927): Her ex-husband filed a $200,000 lawsuit (approximately $3.5 Million today), claiming partial ownership of Poro. The legal battle drained her finances.

• Competitor Challenges: Madam C.J. Walker, who had previously worked as a Poro agent, started her own company and became a direct competitor, drawing away some of Malone’s customer base.

• Economic Downturns: The Great Depression (1929–1939) severely impacted Black businesses, including Poro College.

• The IRS: At the height of her empire, Malone is believed to be worth as much as $14 Million today. Her 1924 income tax was the highest paid by any St. Louis resident and totaled nearly $46,000 (approximately $740,000 today). With her wealth exposed after the divorce, The Internal Revenue Service (IRS) accused Malone of a significant amount of back taxes on real estate and luxury items; and began years of repeated harassment. Her business was further crippled by enormous debt to the government.

In the 1950s under IRS scrutiny, Malone was forced to sell Poro College’s headquarters due to financial difficulties. The building was later demolished, marking the end of an era. The business also saw a shift in the Beauty Industry as new Black-owned haircare brands emerged, and Poro’s influence faded.

Much of her wealth was lost due to lawsuits, economic struggles, and business decline. Limited Estate Planning was also a factor, unlike modern corporations with structured wealth management, Malone’s business assets were not strategically preserved

Malone died childless in 1957 with significantly less wealth than at her peak. She left much of her fortune to her nieces and nephews. At the time of her death, her estate was valued at $100,000 (approximately $1.2 Million today). Poro as a company eventually disappeared. In contrast, some of her philanthropic efforts, including orphanages and scholarships, survived beyond her lifetime.

Conclusion: A Trailblazer’s Lost Fortune, but an Enduring Legacy

Annie Turnbo Malone was one of the wealthiest Black women of her time, yet much of her wealth disappeared due to legal battles, economic shifts, and lack of structured financial planning. However, her contributions to Black business, education, and philanthropy remain invaluable.

Her story serves as a lesson in entrepreneurship, financial literacy, and wealth preservation. If her company had adapted to changing times and implemented stronger legal protections, Poro could have remained a dominant force in the beauty market today.