Business

Cosmetics giant Revlon preparingto file for bankruptcy next week

Distressed debt information supplier Reorg first reported on the potential bankruptcy. Revlon’s shares plunged 53%, the largest one-day drop on report, on Friday to shut at $2.05.

Cosmetics giant Revlon Inc. is getting ready to file for Chapter 11 bankruptcy as quickly as next week because it battles provide chain issues and a heavy debt load, in accordance with individuals with information of the matter. 

Talks across the potential submitting aren’t ultimate and will change, stated the individuals, who requested to not be named discussing non-public negotiations. A consultant for Revlon declined to remark. 

Distressed debt information supplier Reorg first reported on the potential bankruptcy. Revlon’s shares plunged 53%, the largest one-day drop on report, on Friday to shut at $2.05. 

New York-based Revlon, owned by billionaire Ron Perelman’s MacAndrews & Forbes, struggled amid competitors from Estee Lauder Cos. and a number of smaller firms utilizing social media to lure prospects. Sales had been declining years earlier than the pandemic, which additionally hit the company exhausting. 

The model has narrowly averted a number of defaults by chopping debt offers with collectors. The company is speaking with collectors and fairness possession of the agency is more likely to change, one of many individuals stated. 

Revlon has greater than 15 manufacturers, together with Elizabeth Arden and Elizabeth Taylor, which it markets in practically 150 nations.


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