Revlon has formally submitted for bankruptcy.
The 90-calendar year-old cosmetics big announced on Thursday that the company voluntarily petitioned for reorganization below Chapter 11 in the U.S. Individual bankruptcy Courtroom for the Southern District of New York.
Like numerous other businesses, the enterprise has been confronted with ongoing world wide worries that particularly issue to provide chain and increasing inflation challenges, in addition to the brand’s ongoing obligations to its creditors.
This authorized continuing was filed with the intention to let Revlon to strategically reorganize its legacy funds composition and improve its long-expression outlook.
“Present day filing will allow for Revlon to provide our shoppers the legendary products and solutions we have sent for a long time, while offering a clearer path for our foreseeable future growth,” claimed Debra Perelman, Revlon’s president and main executive officer in a assertion. “Customer demand for our goods continues to be robust — individuals like our models, and we continue to have a healthy market place position. But our complicated funds construction has restricted our potential to navigate macro-economic challenges in buy to meet this demand from customers.”
With court approval, the company explained it could acquire $575 million in debtor-in-possession financing from its existing lender base. In addition to its existing working capital, this will give the organization with far more monetary assistance for working day-to-day operations, it stated.
“By addressing these elaborate legacy personal debt constraints, we hope to be capable to simplify our funds structure and considerably decrease our credit card debt, enabling us to unlock the full potential of our globally acknowledged brand,” claimed Perelman.
Revlon was established in New York Town in 1932 by brothers Charles and Joseph Revson and chemist Charles Lachman. In 2016, it was obtained by Elizabeth Arden and its portfolio makes.
Currently, Revlon has grown to involve cosmetics, skincare, fragrance and personal treatment. Some of the firm’s sister brand names contain Almay, Creme of Character, movie star fragrances from Britney Spears, Christina Aguilera and a lot more.