Cosmetics company Revlon, has filed for Chapter 11 bankruptcy protection - weighed down by rising debts, global supply chain disruptions and new rivals. The firm has been a fixture on beauty shelves for 90 years but has struggled in recent years with mounting debt, rising competition and failure to keep pace with changing beauty standards.
The firm said that upon court approval, it expects to receive 575 million US dollars (£467 million) in financing from its existing lenders, which will allow it to keep its day-to-day operations running. The company avoided bankruptcy in late 2020 by persuading enough bondholders to extend its maturing debt.
Debra Perelman, who was named Revlon president and CEO in 2018, 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." She said demand for its products remain strong, but its “challenging capital structure” offered limited ability to navigate macro-economic issues.
