Revlon, the $10bn Cosmetics Giant Goes Bankrupt, Cites Supply Woes
- Cosmetics and beauty giant, Revlon has filed for bankruptcy in the United States, citing supply problems
- The company said it is struggling to meet customers demands as shipping from China to the US takes longer
- It said it will refocus its plans on how to deliver its iconic products to its consumers in the coming months
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One of the world’s top cosmetics companies, Revlon filed for bankruptcy on Wednesday, June 15, 2022, saying it is struggling with a huge debt load and slowed supply.
The firm stated that it is expecting to receive $575 million in debtor-in-possession financing from its existing lender base, which will help the company’s day-to-day operations.
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Why Revlon filed for bankruptcy
The organisation said filing for bankruptcy will allow it to offer its customers its renowned products which it has delivered for many years, while providing a clearer path for its growth in the future, a CNBC report said, citing the company’s CEO, Debra Perelman.
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Perelman said the challenging capital structure has hampered the company’s ability to find its way through macroeconomic issues.
The company’s filing stated that it is unable to timely fill almost one-third of customers’ demands for its products because of its inability to find enough and regular supply of raw materials.
According to reports, shipping components from China to the United States takes the company between eight to 12 weeks and is four times more than it did in 2019.
Revlon controlled by billionaire businessman
Revlon remains the first major consumer-centric business to file for bankruptcy in what many see as stress in the beauty sector.
The beauty company, controlled by billionaire Ron Perelman’s MacAndrews and Forbes has listed assets and liabilities between $1 billion and $10 billion, the filing stated.
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Source: Legit.ng
