Revlon, an American nail polish, lipstick and perfume maker, filed for bankruptcy by launching Chapter 11 operations to reduce its debt. In a document filed late Wednesday in a New York court, the company said its total debt was between $ 1 billion and $ 10 billion. It recorded $ 3.3 billion in long-term debt in the first quarter. Its assets are in the $ 1-10 billion range. As of March 31, it was $ 2.4 billion.
In the United States, the use of Chapter 11 is a tool that allows a company that is unable to repay its debt to restructure its defenses while continuing its current operations. Bankruptcy filing “enables Revlon to deliver to our customers the iconic products we have provided for decades, while listing a clear path for our future growth,” said Debra Pearlman, CEO of the New York Group.
The company said it expects to receive $ 575 million in funding from its creditors if its bankruptcy is approved by a US court.
$ 67 million net loss
The majority owned by McAndrews & Forbes Holdings, owned by billionaire investor Ronald Peralman and his daughter Debra Perelman, Revlon reported a net loss of $ 67 million from January to March. Elizabeth Orton (acquired in 2016), a company that markets Alme and Britney Spears fragrance brands, operates in more than 150 countries.
The Revlon supply chain has been hit hard by the crisis and high inflation. The group is facing increasingly tough competition, which has weighed on its revenue in recent years.
In August 2020, he was at the center of financial news when he revealed that Citibank had “misappropriated” $ 900 million to several of the manufacturer’s debtors. The bank filed a complaint against the investment fund for refusing to repay a portion of the amount, but it was dismissed by a New York judge.
The Revlon move, which is listed on the New York Stock Exchange, was suspended in e-commerce Thursday morning before the opening of Wall Street. The stock was over 20% at the time of its suspension.