Revlon has filed for bankruptcy after 90 years in business

ByKristen Amber

Jun 21, 2022 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

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Revlon has formally submitted for individual bankruptcy.

The 90-yr-previous cosmetics huge declared on Thursday that the organization voluntarily petitioned for reorganization less than Chapter 11 in the U.S. Bankruptcy Courtroom for the Southern District of New York.

Like many other providers, the organization has been confronted with ongoing world-wide issues that exclusively point to offer chain and soaring inflation difficulties, in addition to the brand’s continued obligations to its creditors.

This legal proceeding was submitted with the intention to enable Revlon to strategically reorganize its legacy money construction and increase its extensive-expression outlook.

Revlon Inc. model eye shadow is arranged for a photograph in Tiskilwa, Unwell., Feb. 28, 2018.

Daniel Acker/Bloomberg via Getty Photographs, FILE

“Today’s submitting will permit Revlon to provide our buyers the legendary products and solutions we have sent for a long time, whilst offering a clearer path for our upcoming advancement,” explained Debra Perelman, Revlon’s president and chief government officer in a statement. “Shopper demand from customers for our merchandise stays sturdy — folks like our makes, and we proceed to have a healthful market placement. But our hard funds construction has limited our capacity to navigate macro-financial problems in order to satisfy this demand.”

With courtroom acceptance, the business mentioned it could acquire $575 million in debtor-in-possession financing from its present financial institution base. In addition to its current operating cash, this will offer the organization with additional monetary guidance for day-to-working day functions, it explained.

“By addressing these advanced legacy debt constraints, we assume to be ready to simplify our cash framework and drastically decrease our credit card debt, enabling us to unlock the total opportunity of our globally acknowledged model,” reported Perelman.

Revlon was established in New York Metropolis in 1932 by brothers Charles and Joseph Revson and chemist Charles Lachman. In 2016, it was acquired by Elizabeth Arden and its portfolio brand names.

Right now, Revlon has developed to contain cosmetics, skincare, fragrance and individual treatment. Some of the company’s sister brand names contain Almay, Creme of Mother nature, movie star fragrances from Britney Spears, Christina Aguilera and far more.

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