Revlon Files for Bankruptcy

Cosmetics giant Revlon Inc has filed for Chapter 11 bankruptcy after dealing with supply chain problems and debt.

“Today’s filing will allow Revlon to offer our consumers the iconic products we have delivered for decades, while providing a clearer path for our future growth,” said Revlon President and CEO Debra Perelman.

Despite bringing in $479.6 million in net sales, Revlon’s supply problems still caused a $67 million net loss during Q1.

Revlon is expected to receive $575 million in debtor-in-possession (“DIP”) financing from its existing lender base if the Court for the Southern District of New York approves their filing.

Revlon’s bankruptcy filing however did not include international arms except those from Canada and the U.K.

Revlon said it would continue with its day-to-day operations despite its bankruptcy filing. 

Revlon reportedly has more than $3 billion of long-term debt, while its interest expense was nearly $248 million last year, and it reported $132 million of liquidity by the end of March this year. 

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