CNN confirms that Cosmetics Giant Revlon just filed for Chapter 11 bankruptcy protection after being in business for almost 90 years.
Revlon has reportedly lost its market share to newcomer cosmetic lines backed by celebrities, such as Kylie Jenner’s Kylie Cosmetics and Rihanna’s Fenty Beauty.
CNN confirms though that Revlon is expected to receive $US575 million in financing from its existing lenders, which would enable it to keep its day-to-day operations running.
“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,” Revlon CEO Debra Perelman said in a release. She also said, “challenging capital structure has limited our ability to navigate macro-economic issues in order to meet this demand.”
Revlon was founded in 1932 by brothers Charles and Joseph Revson and Charles Lachman. Revlon (REV) went public in 1996 and in 2016 it was bought by Elizabeth Arden. It’s home to several high-profile brands, including Britney Spears Fragrances and Christina Aguilera Fragrances.
CNN further confirms that Revlon’s sales dropped over the years and in 2021 fell 22% from its 2017 levels. Shares have reportedly fallen more than 80% since the beginning of the year. ABC also confirms that in the latest quarter that ended in March, sales rose nearly 8 percent, but still lag pre-pandemic levels in excess of $US2.4 billion a year.
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