Revlon is reportedly planning to file for bankruptcy – here are the details

Beauty

The American-made cosmetics company has found a common dilemma Revlon in turmoil. The brand will reportedly file for Chapter 11 bankruptcy due to a long decline in sales, unmet supply chain requirements and more. It’s almost a reality for the company, which also houses brands like Almay, Elizabeth Arden New York, Mitchum and CND, to name a few.

Reuters posted a record-breaking decline as Revlon’s shares plunged 46 percent on Friday, June 10. The company’s shares are now at $1.17 per share. According to Women’s Wear Daily, Ronald Perelman, the brand’s largest shareholder, began liquidating his assets in 2020, illustrating the company’s decline.

Business of Fashion then confirmed that “its annual interest expense for the past year was nearly $248 million and reported liquidity of $132 million as of March 31.” The publication also noted a May callback with Chief Executive Officer Debra Perelman, where she acknowledged the company’s decline and expressed an inability to meet product demand with inflation at an all-time high.

Revlon’s potential bankruptcy is also caused in part by more than $3 billion in long-term debt. Hoping to keep the company from bankruptcy in 2020, Revlon looked to several potential lenders to support the accumulated debt, Business of Fashion reported. Although it failed to meet its intended funding goal, it received a $1.8 billion debt refinance.

Curls reached out to Revlon officials, who declined to comment at the time.


More about eye make-up:


Watch Alisha Wainwright’s Wash Day Diary now:

Don’t forget to keep following Allure Instagram and Twitter.

Leave a Reply

Your email address will not be published. Required fields are marked *