News of the potential Chapter 11 filing comes after the beauty company saw its shares close at $2.05 on June 10, and according to the Business of Fashion, Revlon’s owner Ron Perelman’s MacAndrews & Forbes has struggled with competition from Estée Lauder and smaller companies that are using social media to their advantage when it comes to drawing in customers and sales.
On May 4, as part of the company’s first quarter earnings of 2022, Debra Perelman, president and CEO, stated: “While the supply chain challenges continue to have an impact, our first quarter results were strong on both the top and bottom line. Each of our reporting segments grew over the prior year, and we experienced our best Q1 adjusted EBITDA in six years. Revlon is executing against our well-established strategic plan of focusing on our core, iconic brands in key markets as well as our digital acceleration to drive long-term, sustainable growth while protecting profitability and managing our liquidity. We continue to manage our business dynamically as we navigate ongoing macroeconomic uncertainty.”
Although the company posted strong results for its first financial results of 2022 and saw a stock increase of 41.9% as of June 14, with shares reaching a high price of $3.15, it is still continuing to face uncertainty.
According to reports, Revlon may file for Chapter 11 as soon as the end of the week of June 18.