Revlon Cosmetics Files for Chapter 11 Bankruptcy Protection
Jun 16, 2022 By MarketDepth
Revlon (NYSE: REV), a multinational cosmetics company, filed for Chapter 11 bankruptcy protection on Wednesday as it deals with continuous supply chain disruptions and its heavy debt load. Furthermore, the company revealed plans to receive USD575 Million in debtor-in-possession financing from its current lender base, which will fund its day to day operations.
“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.”Revlon Chief Executive Officer Debra Perelman
According to court documents, the cosmetics company listed assets amounting to USD2.3 Billion as of April, and debts of USD3.7 Billion. The company is confident that the filing will allow it to “strategically reorganize” it finances, highlighting “liquidity constraints” pushed by supply chain issues and inflation.
Product Available for Decades
The 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,” 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.”Revlon Chief Executive Officer Debra Perelman