Revlon files for bankruptcy

The American cosmetics giant Revlon decided to file, together with some of its subsidiaries, with the Bankruptcy Court of the Southern District of New York the petition to voluntarily avail themselves of the protection of Chapter 11 of the United States Bankruptcy Law in the face of bankruptcy. reorganization of the company due to the impact on its activity of the supply chain problems and the sharp rise in inflation.

The multinational, which indicated that none of Revlon’s international operating subsidiaries is included in the procedure, except those in Canada and the United Kingdom, explained that the measure will allow the strategic reorganization of the company’s capital structure and improve its long-term perspective, especially amid liquidity constraints brought on by global challenges such as supply chain disruption and rising inflation, as well as obligations to its creditors.

“Consumer demand for our products remains strong, and we continue to have a healthy position in the market. However, our challenging capital structure limited our ability to navigate macroeconomic issues to meet this demand”, said Debra Perelman, president and CEO of Revlon.

In this regard, the executive expressed her confidence that through Chapter 11 protection the company will be able to address complex legacy debt restrictions and simplify its capital structure, as well as significantly reduce its debt, thereby unlocking the full potential of its asset’s globally recognized brands.

The multinational, which dates back to 1932, expects to receive around 575 million dollars in debtor-in-possession financing to support the running of day-to-day operations.

K. Tovar

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Source: Forbes