It said in March that logistical issues hurt its ability to meet customer orders. In recent months, Revlon has experienced industry-wide supply chain challenges and higher costs that are challenging companies globally. Perelman said that demand for its products remain strong, but its “challenging capital structure” offered limited ability to navigate macro-economic issues. Her father, billionaire Ron Perelman, backs the company through MacAndrews & Forbes, which acquired the business through a hostile takeover in the late 1980s. “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,” said Debra Perelman, who was named Revlon president and CEO in 2018. The New York-based company said that upon court approval, it expects to receive $575 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. In the latest quarter that ended in March, sales rose nearly 8%. Sales tumbled 21% 2020, the start of the pandemic, though those sales bounced back 9.2% in its most recent reporting year with vaccines now widespread. Revlon’s problems only intensified with the pandemic as sales of lipstick tumbled, with masks the fashion of the era. And in addition to rivals like Procter & Gamble, it faced increased competition from celebrity cosmetics lines like Kylie Jenner’s Kylie, which capitalized on their massive social media following. The New York City company was slow to follow most women who gave up flashy cosmetics like red lipstick for more muted tones starting in the 1990s. It has struggled in recent years, however, with mounting debt, rising competition and failure to keep pace with changing beauty standards. And it’s a company that broke race barriers and put supermodels like Iman, Claudia Schiffer, Cindy Crawford and Christy Turlington front and center. With household names like Almay to Elizabeth Arden, Revlon has been a mainstay on store shelves for decades. NEW YORK (AP) - Revlon, the 90-year-old multinational cosmetics company, has filed for Chapter 11 bankruptcy protection, weighed down by rising debts, global supply chain disruptions and new rivals.
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