Cosmetic giant Revlon is nearly bankrupt! The company known for “The London Look” is has filed for chapter 11 bankruptcy.
Revlon Inc. is getting ready. file c .Chapter 11 Protection Next week, after struggling for years with too much debt, fierce competition in the cosmetics industry, further inflationary pressures and recent pressures on the supply chain, people familiar with the matter said.
The Cosmetics producer, owned by billionaire Ron Perlman, MacAndrews & Forbes, is in restructuring talks with major creditors ahead of debt maturity starting next year. The bankruptcy filing could end Perelman’s control of Revlon, which was bought by his own company in 1985.
Revlon was struggling the past years to fill consumer needs. Especially the Gen-z and millennial generation was simply not buying Revlon products anymore. Not being PETA-certified, and no appealing packaging did consumers decide to go for “cooler new” brands.
A person familiar with the matter said the situation was flexible and that filing the Chapter 11 file was not right. Revlon shares fell 53% on Friday to $2.05 a share.
The company’s first debt maturity date is September 2023 and includes an $866 million loan that was paid off by chance in 2020 by managing agent Citigroup Inc. With your own money instead of Revlon. Some creditors returned the money to Citi, while others held about $500 million in incidental payments.