Cosmetics Giant Revlon Files for Bankruptcy
Ninety-year-old cosmetics powerhouse Revlon filed for bankruptcy on June 15 as it struggled to contain debt amid global issues such as supply crunch and inflation.
In a June 16 press release, the American multinational company said filing for Chapter 11 bankruptcy protection will enable it to “strategically reorganize its legacy capital structure and improve its long-term outlook, especially amid liquidity constraints brought on by continued global challenges, including supply chain disruption and rising inflation, as well as obligations to its lenders.”
The New York Stock Exchange-listed beauty brand began by selling nail polish in 1930s and gradually expanded to other types of cosmetics and skincare. But in recent years, it has faced tight competition with newer names backed by celebrities such as Rihanna’s Fenty Beauty.
Revlon President and CEO Debra Perelman said while demand for their products “remains strong,” the company’s “challenging capital structure has limited our ability to navigate macro-economic issues in order to meet this demand.”
Revlon’s foreign subsidiaries are excluded from the filing, except for Canada and the United Kingdom.
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