Revlon a Cosmetics company that faced racial barriers and dictated beauty trends for much of the last century. The organization has filed for Chapter 11 bankruptcy protection. It has been a mainstay on store shelves since its establishment 90 years ago in New York City because it oversaw a stable of household names, from Almay to Elizabeth Arden. So, the article contains Revlon Declared Bankruptcy.
Revlon could not keep pace with changing tastes; however, it was slow to follow women because it traded flashy red lipstick for more muted tones in the 1990s. Additionally, losing market share to big competitors like Procter & Gamble, newcomer cosmetic lines from Kylie Jenner, and others successfully capitalized on the massive social sites by following the famous faces that fronted the products.
Revlon’s problems only intensified with the COVID-19 pandemic as lipstick gave way to a new era in fashion, this one featuring medical-grade masks. It is already weighed down by rising debt. The sales dropped 21% in 2020, the first year of the pandemic, though those sales rebounded by 9.2% in its most recent survey year with vaccines worldwide. In the first quarter of 2022, the sales increased nearly 8% but still lag pre-pandemic levels over $2.4 billion a year.
The global supply chain disruptions hobbling hundreds of international companies were too much for Revlon. It barely led Revlong to escape bankruptcy in late 2020 by persuading bondholders to increase its maturing debt.
Revlon said that upon court approval, is expected to receive $575 million in financing from its existing lenders, allowing it to keep its day-to-day operations running. It said, “Today’s filing will allow Revlon to offer our consumers the iconic products we have delivered for decades when providing a clearer path for our future growth,” said Debra Perelman, Revlon’s President and CEO of 2018.
Revlon is the first brand who became the first beauty company to feature a Black model in 1970, Naomi Sims. Then, in the 1980s, the company energized the cosmetics industry by putting both famous and yet-to-be-discovered models like Iman, Claudia Schiffer, Cindy Crawford, and Christy Turlington front and center, promising to make all women “unforgettable.”
The company doubled down during the pandemic to get more online services like one-on-one virtual consultations through its Elizabeth Arden line, she said. Mr. Perelman also said that the brand company was learning to be more nimble from celebrity launches and that Revlon had regained market share. However, the filing was created in the U.S. Bankruptcy Court for the Southern District of New York. According to its bankruptcy filing, the company listed assets and liabilities between $1 billion and $10 billion.
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