NEW YORK, NY. (CW44 Information At 10 | CNN) — The 90-year-old beauty big, Revlon, has filed for Chapter 11 chapter safety due to its crippling debt and mounting movie star competitors.
The nail polish and lipstick maker stated the transfer will enable it to “strategically reorganize” its funds, pointing to “liquidity constraints” sparked by provide chain disruptions and inflation. Revlon is receiving $575 million in debtor-in-possession financing to assist assist its day-to-day operations.
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“In the present day’s submitting will enable Revlon to supply our shoppers the enduring merchandise we’ve got delivered for many years, whereas offering a clearer path for our future progress,” stated Revlon CEO Debra Perelman in a launch. She added that its “difficult capital construction has restricted our capacity to navigate macro-economic points as a way to meet this demand.”
Revlon lately misplaced shelf area and gross sales to startups backed by celebrities, akin to Kylie Jenner’s Kylie Cosmetics and Rihanna’s Fenty Magnificence.
It has additionally been hit by provide points, made worse by the Covid-19 pandemic. Ensuing product shortages have been one other main think about tipping Revlon out of business, and analysts have stated they have been unlikely to be resolved within the near-term.
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The corporate was based in 1932 by brothers Charles and Joseph Revson and Charles Lachman. Revlon went public in 1996 and in 2016 purchased by Elizabeth Arden in an $870 million skincare guess to fend off competitors. It homes a number of high manufacturers, together with Britney Spears Fragrances and Christina Aguilera Fragrances.
It additionally made headlines two years in the past when Citigroup by chance despatched almost $900 million of its personal cash to Revlon’s lenders. A choose dominated that the financial institution couldn’t get well the cash.
Revlon’s gross sales lagged through the years and in 2021 fell 22% from its 2017 ranges. Shares have fallen greater than 80% because the starting of the yr.
— Reuters contributed to this report.
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