A public safety officer watches as people stand in front of a billboard owned by Revlon, which takes their pictures and shows them in Times Square in Manhattan, New York, October 13, 2015. REUTERS / Carlo Allegri
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June 16 (Reuters) – Revlon Inc (REV.N) filed for bankruptcy protection on Chapter 11 on Wednesday after struggling to compete with online-focused new brands in recent years.
The manufacturer of nail polishes and lipsticks, controlled by billionaire Ron Perelman’s MacAndrews & Forbes, listed assets and liabilities of between $ 1 billion and $ 10 billion, according to a statement from the U.S. Insolvency Court for New York’s Southern District.
The bankruptcy petition comes days after the Wall Street Journal reported that Revlon had begun negotiations with creditors ahead of impending debt maturities to avoid bankruptcy.
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Revlon’s sales were hampered by bottlenecks and a failure to move to sought-after skin care, losing space in US stores to startups backed by celebrities such as Kylie Jenner’s Kylie Cosmetics and Rihanna’s Fenty Beauty.
In contrast, rival Coty Inc (COTY.N) won market share by investing heavily to improve supply and restore demand for mascara and lipstick after the pandemic.
Revlon, led by Perelman’s daughter Debra Perelman since mid-2018, had a long-term debt of $ 3.31 billion as of March 31.
Founded in 1932 by brothers Charles and Joseph Revson and Charles Lachman, Revlon was sold to MacAndrews & Forbes in 1985 and went public 11 years later. The company bought Elizabeth Arden in a $ 870 million deal in 2016 to boost its skincare business.
But Revlon’s net sales in 2021 fell 22 percent from 2017 levels amid growing competition. The company also made headlines two years ago when Citigroup Inc (CN) accidentally sent nearly $ 900 million of its own money to Revlon’s creditors instead of low interest. However, a US federal judge ruled that he was not entitled to a refund. Read more
Revlon, which began selling nail enamel nearly 90 years ago, also has several brands, including Britney Spears Fragrances and Christina Aguilera Fragrances.
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Report by Maria Ponejat and Pravin Paramassivam in Bengaluru; Edited by Arun Koyur and Shunak Dasgupta
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