Revlon reported a net loss of $67 million from January to March.
New York:
American cosmetics giant Revlon has filed for bankruptcy after years of stiff competition from rivals focused on online sales and supply chain problems.
In a court filing late Wednesday, the company began Chapter 11 proceedings to manage its debt, which it said was worth between $1 billion and $10 billion.
Revlon, known for its signature nail polishes and lipsticks, reported long-term liabilities of $3.3 billion in the first quarter.
“Today’s filing will allow Revlon to continue to offer our consumers the iconic products it has delivered for decades, while providing a clear path for our future growth,” CEO Debra Perelman said in a statement.
In the United States, Chapter 11, known as restructuring bankruptcy, allows firms to reorganize themselves while staying safe from creditors and continuing to operate.
The company said it expects $575 million in financing from its lenders if its bankruptcy is cleared in court.
Owned by billionaire investor Ronald Perelman and operated by his daughter, Debra Perelman, Revlon reported a net loss of $67 million from January to March.
The company, which lists Elizabeth Arden, Almay and Britney Spears fragrances among its brands and operates in more than 150 countries, is suffering from a global supply chain crisis and high inflation.
Revlon has also faced increasingly stiff competition, which has hurt revenues in recent years.
The company was embroiled in controversy in August 2020 when Citibank disclosed that it had mistakenly transferred $900 million to several creditors of Revlon.
The bank then filed a complaint against an investment fund that refused to pay part of the amount, but the complaint was dismissed in court.
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