Business

Revlon files bankruptcy, expected to receive $575 million

Revlon files for bankcruptcy

The well known international Revlon, filed for bankruptcy on Wednesday, expected to receive $575 million. Due to competitions from new brands, the makeup supply that has been available since 1932.

With many new cosmetic companies backed by celebrities , such as Rihanna’s Fenty Beauty and Kylie Jenner’s Kylie Cosmetics, who can rely on an existing fanbase to generate hype and sales, challenges for Revlon seem to rise, topping supply chain issues and labor shortages, is made worse by the pandemic.

Revlon’s president and CEO Debra Perelman, said in a statement issues on their website, that the company has a strong support from their customers and that people still love their brands and a healthy market position, however

“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, Revlon’s President and Chief Executive Officer. “Consumer demand for our products remains strong – people love our brands, and we continue to have a healthy market position.

But our challenging capital structure has limited our ability to navigate macro-economic issues in order to meet this demand. By addressing these complex legacy debt constraints, we expect to be able to simplify our capital structure and significantly reduce our debt, enabling us to unlock the full potential of our globally recognized brands. We are committed to ensuring the reorganization is as seamless as possible for our key stakeholders, including our employees, customers and vendors, and we appreciate their support during this process.”

 

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