Revlon reported a net loss of $ 67 million from January to March.
New York:
US cosmetics giant Revlon has filed for bankruptcy after years of fierce competition from competitors focused on online sales and supply chain issues.
In a lawsuit late Wednesday, the company launched a Chapter 11 procedure to manage its debt, which it says is between $ 1 billion and $ 10 billion.
Revlon, known for its branded nail polish and lipstick, reported long-term liabilities of $ 3.3 billion in the first quarter.
“Today’s submission will allow Revlon to offer our customers the iconic products we have supplied for decades, while providing a clearer path for our future growth,” CEO Debra Perelman said in a statement.
In the United States, Chapter 11, known as Bankruptcy, allows companies to restructure while being protected from creditors and continuing to operate.
The company said it expects to receive $ 575 million in financing from its creditors if its bankruptcy is approved in court.
Owned by billionaire investor Ronald Perelman and managed by his daughter Debra Perelman, Revlon reported a net loss of $ 67 million from January to March.
The company, which lists Elizabeth Arden, Almay and Britney Spears Fragrances among its brands and has operations in more than 150 countries, has suffered from the global supply chain crisis and high inflation.
Revlon is also facing fierce competition, which has hurt revenue in recent years.
The company was embroiled in controversy in August 2020, when Citibank revealed that it had accidentally transferred $ 900 million to several of Revlon’s creditors.
The bank then filed a lawsuit against an investment fund, which refused to pay part of the amount, but the lawsuit was rejected in court.
(This story was not edited by NDTV staff and is automatically generated by a syndicated channel.)
Add Comment