90-year-old cosmetics behemoth Revlon is in the red, filing for bankruptcy protection yesterday.
The company is receiving $575 million in debtor-in-possession financing to help support its day-to-day operations.
Revlon CEO Debra Perelman said in a release,
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…
…challenging capital structure has limited our ability to navigate macro-economic issues in order to meet this demand.”
Revlon has been hit by supply issues, made worse by COVID, another major factor in tipping the company into bankruptcy.
The company was founded in 1932 by brothers Charles and Joseph Revson and Charles Lachman. Revlon (REV)went public in 1996 and in 2016 was bought by Elizabeth Arden for $870 million.
It houses several top brands, including Britney Spears Fragrances and Christina Aguilera Fragrances.
Two years ago Citigroup accidentally sent nearly $900 million of Revlon’s money to lenders. A judge ruled that the bank couldn’t recover the money. (A nearly billion dollar bookkeeping error!?)
Revlon’s sales lagged over the years and in 2021 fell 22% from its 2017 levels. Shares have fallen more than 80% since the beginning of the year.
India’s Reliance considers buying out Revlon in U.S., ET Now reports https://t.co/UaNrObpeYF pic.twitter.com/JDFTPnxfVl
— Reuters (@Reuters) June 17, 2022
(Photos, Fenty & Kylie Cosmetics, Revlon illustration, Trey Speegle; via CNN)
