BENGALURU: Revlon Inc filed for Chapter 11 bankruptcy protection on Wednesday after struggling to compete with online-focused upstart manufacturers lately.
The nail polish and lipstick maker, managed by billionaire Ron Perelman’s MacAndrews & Forbes, listed property and liabilities between $1 billion and $10 billion, in response to a submitting with the U.S. Bankruptcy Court for the Southern District of New York.
The bankruptcy submitting comes days after the Wall Street Journal reported Revlon had begun talks with lenders forward of looming maturities of debt to keep away from bankruptcy.
Revlon’s gross sales have struggled amid provide bottlenecks and a failure to swiftly swap to in-demand skincare, shedding shelf house in U.S. shops to startups backed by celebrities similar to Kylie Jenner’s Kylie Cosmetics and Fenty Beauty by Rihanna.
In distinction, rival Coty Inc has gained market share by investing closely to enhance provides and cater to a post-pandemic rebound in demand for mascara and lipsticks.
Revlon, which has been helmed by Perelman’s daughter Debra Perelman since mid-2018, had long-term debt of $3.31 billion as of March 31.
Formed in 1932 by brothers Charles and Joseph Revson and Charles Lachman, Revlon was offered to MacAndrews & Forbes in 1985 and went public 11 years later. The company purchased Elizabeth Arden in an $870 million deal in 2016 to strengthen its skincare enterprise.
But Revlon’s internet gross sales in 2021 declined 22% from its 2017 ranges amid rising competitors. The company additionally made headlines two years in the past when Citigroup Inc by accident despatched almost $900 million of its personal cash to Revlon’s lenders, moderately than a small curiosity fee. A U.S. federal choose, nonetheless, dominated it was not entitled to recoup the cash.
Revlon, which began off promoting nail enamel almost 90 years in the past, additionally homes a number of manufacturers together with Britney Spears Fragrances and Christina Aguilera Fragrances. – Reuters
