Revlon is one of the oldest cosmetic companies in the world. Source: Wikimedia Commons.
The iconic beauty brand has filed for bankruptcy after years of struggling to keep up with rising costs, debt, and supply chain issues for the move.
Late last week the company filed for Chapter 11 bankruptcy, which according to the US government involves the “reorganization” of the business while it remains in possession of the business. According to the press release, Revlon is expected to receive US$575 million in Debtor-in-Possession Financing to help with the day-to-day operations.
The hopes are the filing will allow the company to “strategically reorganize” and tackle issues of “supply chain disruption, rising inflation as well as obligations to its lenders”.
Most of the company’s overseas subsidiaries are not a part of the bankruptcy claim except for the UK and Canada. It’s been detailed that US$75 million of the financial assistance will go towards paying off foreign debt.
Revlon President and CEO Debra Perelman commented that the decision was necessary to ensure the company’s future.
“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.
“Consumer demand for our products remains strong – people love our brands, and we continue to have a healthy market position.”
Revlon is retained by MacAndrews & Forbes, a holding company owned by billionaire Ronald Perelman, who also serves as chairman. Under the Revlon Inc umbrella are other cosmetic brands including Elizabeth Ardern, Almay, Cutex, while the business also handles several celebrity fragrances with Jennifer Aniston, Mariah Carey, Britney Spears, and Elizabeth Taylor.
Established in 1932, Revlon started out producing nail polish with other cosmetic products released throughout the 30s. Elizabeth Arden dates back even earlier, with the Ardern salon opening in 1910 later selling it’s first products of eyeshadow, lipstick, and skincare around 1916.
Revlon signed its first brand ambassador in 1973, using model Lauren Hutton. Majority of their modern day products are made either in the US or China.
