Revlon files for bankruptcy
After much speculation, Revlon has officially filed for Chapter 11 bankruptcy protection.
Founded more than 90 years ago in New York City, the company stated that by filing for bankruptcy, it will be given the opportunity to operate seamlessly in all markets and focus on driving future growth. In addition, the company also will be able to focus on navigating the ongoing impacts of the global supply chain challenges and rising inflation.
[Read More: Good Kind Pure fragrances feature scents inspired by nature]
Revlon expects to receive $575 million in debtor-in-possession financing, providing liquidity to support day-to-day operations.
“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,” said Debra Perelman, Revlon's president and chief executive officer. “Consumer demand for our products remains strong – people love our brands, and we continue to have a healthy market position. But our challenging capital structure has limited our ability to navigate macro-economic issues in order to meet this demand.”
Following the filing, the company shared that its management team will continue to run its business, and as part of the reorganization process, will file customary first-day motions that will allow it to maintain operations in the ordinary course.
[Read More: Retailers use pricing, analytics to drive store traffic]
The company also shared that it intends to pay vendors and partners under customary terms for goods and services received on or after the filing date and pay its employees in the usual manner, while also continuing their primary benefits without interruption.
“By addressing these complex legacy debt constraints, we expect to be able to simplify our capital structure and significantly reduce our debt, enabling us to unlock the full potential of our globally recognized brands,” Perelman said. “We are committed to ensuring the reorganization is as seamless as possible for our key stakeholders, including our employees, customers and vendors, and we appreciate their support during this process.”