Revlon filed for Chapter 11 bankruptcy protection as the cosmetics giant is suffering from a debt load and a clogged supply chain.
According to the bankruptcy filing, Revlon is currently unable to fill demand since the company does not have “sufficient and regular supply of raw materials.” Also, shipping components from China to the U.S. are taking eight to 12 weeks and its costs are four times higher compared to 2019 prices.
The filing “will allow Revlon to offer the iconic products we have delivered for decades, while providing a clearer path for our future growth,” Revlon President and CEO Debra Perelman said in a press release. “Our challenging capital structure has limited our ability to navigate macro-economic issues in order to meet this demand.”
The cosmetics firm listed assets and liabilities between $1 billion and $10 billion. The company said it expects to receive $575 million in debtor-in-possession financing from its lender base to support its day-to-day operations.
Perelman’s MacAndrews & Forbes acquired Revlon in a hostile takeover for about $1.8 billion in 1985 and the company went public in 1996.
Revlon had long-term debt of $3.31 billion as of March 31. The company’s sales lagged over the years and in 2021 fell 22% compared to its 2017 levels.
