Thursday, February 2, 2023
HomeAustralian NewsRevlon set to pay executives $53 million in chapter bonuses

Revlon set to pay executives $53 million in chapter bonuses


The chapter caps a tumultuous interval for the corporate, which suffered throughout the pandemic and confronted years of declining gross sales as shopper tastes modified and upstart manufacturers ate into its market share. Extra not too long ago, the corporate stated supply-chain ache and inflation had been difficult its capability to maintain up with rebounding shopper demand.

The corporate has lengthy struggled with a burdensome debt load, even relationship again to when Perelman’s father Ron purchased it in 1985, when he was simply 42. The contested takeover led him to boost his value a number of occasions, ultimately paying $US2.7 billion together with debt in a deal financed by Michael Milken’s junk bond powerhouse Drexel Burnham Lambert.

The 90-year-old company filed for bankruptcy earlier this year.

The 90-year-old firm filed for chapter earlier this yr.Credit score:AP

Whereas different corporations, equivalent to Marvel, went bankrupt below Ron Perelman’s possession, he remained dedicated to maintaining Revlon solvent, deploying intelligent and more and more advanced methods to squeeze out money from different corners of his empire to stage a rescue.

In 2003, he stepped in with a promise of money from his holding firm, MacAndrews & Forbes, to cease Revlon from defaulting because it wobbled below $US2 billion in debt. Many related infusions occurred, together with from Perelman household foundations and his father.

The corporate’s debt load proved burdensome, particularly after it offered greater than $US2 billion 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 nations.

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In recent times, Revlon has struggled to compete with newer manufacturers and people owned by rivals L’Oreal SA and Estee Lauder Cos. which have turned to video bloggers and Instagram personalities to gasoline development. The pandemic offered one other blow to gross sales.

Bloomberg

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