Firm misplaced shelf area in US shops to startups backed by celebrities, and has struggled with inflation and provide chain points.
Cosmetics maker Revlon Inc has filed for Chapter 11 chapter safety after struggling to compete with online-focused upstart manufacturers in recent times.
On Wednesday the nail polish and lipstick maker owned by billionaire Ron Perelman listed belongings and liabilities between $1bn and $10bn, in line with a submitting with the US Chapter Courtroom for the Southern District of New York.
Chapter 11 filings enable an organization to proceed working whereas it really works out a plan to repay collectors.
The chapter submitting comes days after the Wall Avenue Journal reported Revlon had begun talks with lenders forward of looming maturities of debt to keep away from chapter.
Revlon’s gross sales have struggled amid provide bottlenecks and a failure to swiftly swap to in-demand skincare, dropping shelf area in US shops to startups backed by celebrities equivalent to Kylie Jenner’s Kylie Cosmetics and Fenty Magnificence by Rihanna.
The 90-year-old firm acquired its begin promoting nail polish within the throes of the Nice Melancholy, and later added coordinated lipsticks to its assortment. By 1955, the model was worldwide.
Perelman’s holding firm, MacAndrews & Forbes Inc, took management of Revlon in an acrimonious takeover in 1985, funding the take care of junk debt raised by Michael Milken. MacAndrews & Forbes at one level sued Revlon over the corporate’s acceptance of a decrease provide from Forstmann Little & Co, leading to a landmark Delaware courtroom choice on the fiduciary duties of board members, typically dubbed the “Revlon Rule.”
The corporate’s debt load proved burdensome, particularly after it bought greater than $2bn of loans and bonds to fund its acquisition of Elizabeth Arden in 2016. It additionally owns manufacturers together with Cutex and Almay, and markets in additional than 150 international locations.
Revlon narrowly staved off a number of earlier defaults by chopping offers with collectors to remodel its obligations out of courtroom.