Revlon files bankruptcy

Revlon Inc has filed for bankruptcy after the U.S cosmetics firm buckled under debts it built up in efforts to compete with online-focused upstarts.

But the company's sales lagged over the years and in 2021 fell 22% from its 2017 levels. Resulting product shortages were another major factor in tipping it into bankruptcy and analysts have said they were unlikely to be resolved in the near-term. Register now for FREE unlimited access to Reuters.com

Revlon built a cosmetics empire on red nail polish, with lipstick to match. But the pioneering brand, a mainstay of cosmetic cabinets since the Great ...

High inflation, rising interest rates and warnings of a recession have made shoppers more wary of opening their wallets. The social media superstars have promoted their products directly to their millions of Instagram followers, embracing inclusive color palettes and sidestepping the drugstores Revlon has traditionally relied on to sell its products. But the pioneering brand, a mainstay of cosmetic cabinets since the Great Depression, has lost its shine, amid the rise of a new generation of cosmetic brands, changing shopping habits and supply chain snarls. The company’s stretched balance sheet “has limited our ability to navigate macroeconomic issues in order to meet this demand,” she said. Managing its debt load has also created problems beyond the company. The company has about 5,700 employees.

The international beauty company, which sells products in more than 150 countries, has struggled with heavy debt. It listed $3.7 billion in total debts in a ...

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The cosmetics giant is attempting to get out from under its heavy debt load amid soaring prices and a snarled supply chain.

Shipping from China to the United States doubled in time and quadrupled in cost compared with 2019, the company said. Revlon said it’s unable to keep a regular supply of raw materials, putting production at risk, according to the court filing. In May, inflation reached 8.6 percent over the last year, which led to financial pressure felt by many households. “If executed effectively, Revlon could emerge from bankruptcy with a cleaner balance sheet and a better operating profile, improving longer term business prospects,” David Silverman, retail senior director at Fitch Ratings, told RetailDive in email comments. Among the 143 bankruptcies, only three are retail filings. In March 2020, Revlon cut 1,000 positions to improve profitability.

Revlon, the 90-year-old multinational beauty company, has filed for Chapter 11 bankruptcy, weighed down by a heavy debt load, disruptions to its supply ...

Perelman also said that the company was learning from celebrity launches like Kylie to be more nimble. The beauty company said in March that logistical issues hurt its ability to meet customer orders. The company hit many milestones in its heyday. In the latest quarter that ended in March, sales rose nearly 8%. The company avoided bankruptcy in late 2020 by persuading enough bondholders to extend its maturing debt. During an interview with The Associate Press last fall, Perelman said she was optimistic about the future. Revlon also faced increasing competition not only from the likes of Procter & Gamble, but most recently from celebrity lines like Kylie Jenner-backed Kylie, which don’t have to invest a lot in marketing because of their massive social media following.

Cosmetics maker Revlon has filed for Chapter 11 bankruptcy protection, succumbing to a rising debt load, online competition and supply chain woes.

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