Revlon officially filed for Chapter 11 bankruptcy

The growing impact of the current financial crisis across the country has now claimed another victim, as 90-year-old beauty brand Revlon just shed light on its dire financial problems. In new court documents, it is confirmed that Revlon has officially filed for Chapter 11 bankruptcy, citing mounting debt and rising costs.

@APNews reported, in a New York court earlier this week, global beauty brand Revlon revealed how dire its financial situation was by filing for Chapter 11 bankruptcy protection. , due to a debt of more than half a billion dong, disrupting the supply chain network and increasing production costs. Once the bankruptcy filing is approved by the court, Revlon said it hopes to receive $575 million in funding from its existing lenders — the only solution to keeping the company running day-to-day. company. Revlon President & CEO Debra Perelman said of the bankruptcy, “Today’s filing will allow Revlon to offer consumers the iconic products we’ve offered in the past few years. decades, while providing a clearer path for our future growth.”

Perelman continued, adding that while consumer demand for Revlon products remains strong, the company’s “challenging capital structure” makes it difficult to navigate macroeconomic issues. is limited. As with many other businesses, the pandemic made Revlon’s financial problems even worse, as the company’s revenue fell 21% to $1.9 billion in 2020. However, it seems likely. Everything is looking for brands as sales rebounded this year to 9.2%, translating to $2.08 billion — unfortunately, those sales were clearly not enough to help the company. The bankruptcy filing also lists Revlon’s total assets and liabilities between $1 billion and $10 billion.

After previously avoiding bankruptcy in 2020, the past few months have been an intense struggle for the once-dominant beauty brand, driven by industry-wide supply chain issues and rising costs.

Just a few months ago in March of this year, Revlon acknowledged that logistical issues were affecting its ability to fulfill customer orders, along with persistent labor shortages. The company hopes that by filing for bankruptcy, it will be able to maintain and continue to serve its loyal fan base.

Want updates directly in your inbox? Contact us at 917-722-8057 or click here to join!

Source link


News5h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button