Revlon, the $10bn Cosmetics Giant Goes Bankrupt, Cites Supply Woes

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

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.

Revlon, Cosmetics
Revlon cosmetics packs up Credit: Justin Sullivan / Staff
Source: Getty Images

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.

Read also

Economists raise concerns about Nigerians' survival as inflation jumps to 11-month high, hits 17.71 per cent

PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!

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.

Rihanna set to launch beauty line, Fenty Beauty in Nigeria

Read also

Why Peter Obi went to Egypt and what the country is doing better than Nigeria

Legit.ng reported that pop superstar, Rihanna is set to launch her iconic beauty line, Fenty Beauty in Nigeria and 8 other African countries by May 27, 2022.

The pregnant singer disclosed this in a statement on social media on Tuesday, May 10, 2022.

Fenty Beauty is planning to launch a $3 billion IPO, according to sources familiar with the matter.

Source: Legit.ng

Online view pixel