- Cosmetics brand Revlon Inc (NYSE:REV) has filed for bankruptcy under Chapter 11 after facing heavy debt.
- It has filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.
- Related: Beauty Products Giant Revlon In Talks To File For Chapter 11 Bankruptcy: Report
- The filing will allow the cosmetics maker to reorganize its legacy capital structure and improve its long-term outlook in the face of a liquidity crunch.
- The company expects to receive $575 million in debtor-in-possession (DIP) financing from its existing lender base, which will help fund its day-to-day operations.
- The cosmetics maker has been in the industry for ninety years and has recently struggled to compete with brands driven by social media influencers.
- Revlon has listed assets and liabilities between $1 billion and $10 billion and had long-term debt of $3.31 billion as of March 31.
- None of Revlon's international operating subsidiaries, except Canada and the U.K., were included in Chapter 11 proceedings.
- Price Action: REV shares closed higher by 20.32% at $2.25 on Wednesday.
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