A major player in the cosmetics department is in some hot water. Revlon Inc. has filed for Chapter 11 bankruptcy protection.
According to Retail Dive, Revlon Inc. cited more than $3 billion in debt and struggles with supply chain and inflation.
Debra Perelman, Revlon’s President and Chief Executive Officer, 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.”
Revlon Inc. is allegedly expecting to receive $575 million in financing which will cover the cost of day-to-day operations.
Retail Dive stated that the sales for Revlon Inc. “fell by more than half a billion dollars in 2020 and its net loss nearly quadrupled, before easing in 2021”
Perelman concludes that there’s still high consumer demand for Revlon products, but its capital structure has negatively affected the company in not being able to adapt to certain macroeconomic issues. Of course, we’ve seen this with many large and small companies through the last couple of years during the pandemic.
Filing for bankruptcy will allow Revlon Inc. to reorganize its capital structure and give it a chance to improve its business strategy.
Only time will tell if Revlon Inc. will be able to get back on track.
Articles You May Also Be Interested In
Top Brands That Have Expansion Plans For Canada In 2022
40+ Top Brands That Have Expanded In Canada In 2021
The Running List Of Retail Store Closures And Bankruptcies In 2021
The Running List Of Retail Store Closures And Bankruptcies In 2020
6 American Stores Worth Crossing The Border For