Revlon has filed for bankruptcy after 90 years in business
Revlon has officially filed for individual bankruptcy.
The 90-12 months-previous cosmetics giant declared on Thursday that the company voluntarily petitioned for reorganization underneath Chapter 11 in the U.S. Bankruptcy Courtroom for the Southern District of New York.
Like several other firms, the firm has been faced with ongoing worldwide troubles that especially stage to supply chain and climbing inflation challenges, in addition to the brand’s ongoing obligations to its lenders.
This legal proceeding was filed with the intention to allow Revlon to strategically reorganize its legacy cash construction and improve its lengthy-term outlook.
Revlon Inc. brand eye shadow is arranged for a photograph in Tiskilwa, Unwell., Feb. 28, 2018.
Daniel Acker/Bloomberg by way of Getty Illustrations or photos, FILE
“Today’s submitting will allow for Revlon to offer our people the iconic items we have shipped for many years, while furnishing a clearer path for our future expansion,” stated Debra Perelman, Revlon’s president and chief govt officer in a assertion. “Consumer demand from customers for our items stays powerful — people really like our models, and we go on to have a wholesome market position. But our hard capital construction has minimal our potential to navigate macro-economic problems in buy to meet up with this need.”
With court approval, the enterprise stated it could acquire $575 million in debtor-in-possession funding from its existing loan provider foundation. In addition to its existing doing work funds, this will give the firm with additional economic help for working day-to-working day operations, it reported.
“By addressing these elaborate legacy debt constraints, we count on to be capable to simplify our capital structure and significantly lessen our debt, enabling us to unlock the complete probable of our globally recognized model,” reported Perelman.
Revlon was founded in New York Metropolis in 1932 by brothers Charles and Joseph Revson and chemist Charles Lachman. In 2016, it was obtained by Elizabeth Arden and its portfolio brands.
Currently, Revlon has grown to consist of cosmetics, skincare, fragrance and own treatment. Some of the firm’s sister makes consist of Almay, Creme of Character, movie star fragrances from Britney Spears, Christina Aguilera and additional.