US. Revlon Inc, a long-time powerhouse of the US beauty industry, has filed for Chapter 11 bankruptcy with the US Bankruptcy Court for the Southern District of New York.
According to the company, the Chapter 11 filing will allow it to strategically reorganise its legacy capital structure and improve its long-term future. The filing was spurred by the mounting pressures of global supply chain issues, liquidity constraints, rising inflation and debt limitations, the company said.
Revlon expects to receive US$575 million in debtor-in-possession (DIP) financing to support day-to-day operations. The company said that it has strong support from lenders to help navigate the business through challenging times.
Revlon President and Chief Executive Officer Debra Perelman said, “Today’s filing will allow Revlon to offer our consumers the iconic products we have delivered for decades, while providing a clearer path for our future growth.
“Consumer demand for our products remains strong – people love our brands, and we continue to have a healthy market position. But our challenging capital structure has limited our ability to navigate macro-economic issues to meet this demand.
“By addressing these complex legacy debt constraints, we expect to be able to simplify our capital structure and significantly reduce our debt, enabling us to unlock the full potential of our globally recognised brands. We are committed to ensuring the reorganisation is as seamless as possible for our key stakeholders, including our employees, customers and vendors, and we appreciate their support during this process.”
The Revlon Management team will continue to operate the business following the filing. It intends to pay vendors, partners and employees without disruption. Aside from Canada and the UK, none of Revlon’s international operating subsidiaries are included in the US Chapter 11 proceedings.
Revlon was founded by brothers Charles and Joseph Revson – alongside chemist Charles Lachman in 1932. The company began with a single nail enamel product in salons. Today, Revlon is present in 150 countries globally and offers makeup, hair and nail products across its brand portfolio.
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