Revlon may file for bankruptcy soon: Report
According to reports, popular American cosmetics and skin care product maker Revlon is likely to file for bankruptcy soon.
Revlon Inc. is preparing to file for Chapter 11 protection, filing for bankruptcy pursuant to US law, as soon as next week due to heavy debt, stiff competition in the cosmetics business, inflation and supply chain pressures, wall street journal Reported by quoting people familiar with the matter.
The report said the bankruptcy filing could end Perelman’s control of Revlon, which his private-equity firm bought in 1985.
Revlon, owned by billionaire Ron Perelman’s McAndrews & Forbes, has already started discussions with lenders ahead of next year’s loan maturity.
Glendon Capital Management LP and King Street Capital Management are in discussions with Revlon to pay off $1.7 billion in debt. WSJ Reported last week.
According to news agency ReutersAs of March, Revlon had a long-term debt of $3.31 billion. Revlon, which faces stiff competition from digital-native upstart brands, said in March that it faced supply chain bottlenecks that hurt the service’s demand potential, the report said.
Meanwhile, shares of Revlon are down 46% after news emerged of the cosmetics giant preparing to file for bankruptcy, according to the news agency.
Reorg Research was the first to report that Revlon was planning to file for bankruptcy. Revlon is grappling with heavy debt and disruptions during the COVID-19 pandemic.
The rise of new dynamic brands in the highly competitive cosmetic and beauty products industry is also hurting Revlon’s traditional products and marketing campaigns.