Cosmetics giant Revlon preparingto file for bankruptcy next week

Cosmetics giant Revlon Inc. is getting ready to file for Chapter 11 bankruptcy as shortly as subsequent 7 days as it battles source chain issues and a hefty debt load, in accordance to people today with knowledge of the subject. 

Talks all-around the likely filing aren’t closing and could change, stated the persons, who requested not to be named speaking about private negotiations. A agent for Revlon declined to comment. 

Distressed credit card debt information company Reorg to start with noted on the opportunity individual bankruptcy. Revlon’s shares plunged 53%, the largest one particular-working day drop on document, on Friday to shut at $2.05. 

New York-centered Revlon, owned by billionaire Ron Perelman’s MacAndrews & Forbes, struggled amid competitiveness from Estee Lauder Cos. and a host of smaller companies using social media to lure consumers. Product sales had been declining decades ahead of the pandemic, which also hit the firm tough. 

The brand has narrowly averted many defaults by reducing credit card debt promotions with collectors. The company is talking with lenders and equity ownership of the business is very likely to alter, 1 of the people mentioned. 

Revlon has a lot more than 15 brand names, like Elizabeth Arden and Elizabeth Taylor, which it marketplaces in just about 150 countries.