American makeup company Revlon is filing for bankruptcy

The brand has long-term debt of $3.31 billion.

13 Jun, 2022

Cosmetics maker Revlon is preparing to file for chapter 11 protection as soon as next week, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Revlon, whose shares declined 46 per cent, did not immediately respond to a Reuters request for comment.

The lipstick maker began talks with lenders ahead of looming debt maturities to try to steer the business clear of bankruptcy, the WSJ reported last week.

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Revlon had long-term debt of $3.31 billion, as of end-March.

Demand for makeup products has bounced back in recent months as people across the world venture out more often. But Revlon, which faces stiff competition from digital-native upstart brands, said in March it faced supply chain constraints that hurt its ability to service demand.

Reorg Research first reported Revlon was planning to file for bankruptcy.

Comments

Soniye tu auder te la Jun 13, 2022 05:24pm

Just partner up with YouTube celebs. It's not rocket science.

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Tadka Jun 13, 2022 07:01pm

It was the middle class favorite

nk Jun 13, 2022 07:28pm

Finally another American Icon is going to fall.

Zak Jun 13, 2022 08:36pm

American makeup company Revlon is filing for bankruptcy Was PDM advising the company

Dr. Salaria, Aamir Ahmad Jun 13, 2022 09:26pm

To every rise, there is a fall and for every Revlon, there is a wall.

IHKahn Jun 13, 2022 09:41pm

Context is important - According to the estimations, the global beauty market declined 20%-30% due to the pandemic. Women in the US spend around $3,756 on cosmetics annually. 17% of women stopped wearing makeup completely on account of the coronavirus. Now, when fuel costs double and food inflation is >10%; an annual $3,756 spend on cosmetics is an easy place to cut back. Few cosmetics companies will escape this. Expect many families to make food go further, clothes last longer, holidays to be simpler and shorter and cars to be kept longer, as worldwide - familes cope with inflation and economic recession. So let's have more Dawn Images articles showing how to make money go further - and how to support the local economy through PK enterprises.

Bunny Jun 13, 2022 09:46pm

Due to Covid and work from home and other such reasons , a lot of markets like designer clothes , hand bags make up etc., are closing down . sad fact .

Yaqoot Mir Jun 13, 2022 10:24pm

Another symbol of capitalist monopolistic morals is falling good riddance and stay in yr grave replace them with small scale businesses who are local not International!

Shaukat Jun 14, 2022 03:38am

The money Charles Revlon paid to his wife in a divorce settlement, he could have paid his suppliers many times over.

RAja Raman Jun 14, 2022 08:19am

@Zak "Was PDM advising the company" No, not at all. It was spending beyond means and relied on debt financing. Even before pandemic, it was running in loss of 1.8 billion USD. Just like Pakistan economy, Revlon was running in borrowed money and now facing Sri Lanka moment.

Zak Jun 14, 2022 10:46am

@RAja Raman @Zak "Was PDM advising the company" No, not at all. It was spending beyond means and relied on debt financing. Even before pandemic, it was running in loss of 1.8 billion USD. Just like Pakistan economy, Revlon was running in borrowed money and now facing Sri Lanka moment. So was using PDM modus operandi. Results inevitable.