Revlon files for bankruptcy after nearly 100 years

This could be the end of an era for the renowned cosmetics brand Revlon.

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Officially the iconic beauty almost a century old, Chapter 11. filed for Citing “macro-economic issues” as the primary cause, particularly “legacy debt” challenges and supply-chain disruptions.

Revlon is expected to receive $575 million in DIP financing to help with day-to-day operations and maintain business as usual.

“Today’s filing will allow Revlon to continue to offer our consumers the iconic products we’ve delivered for decades, while providing a clear path for our future growth,” Revlon President and CEO Debra Perelman said in a company statement. Statement, “Consumer demand for our products remains strong — people love our brands, and we have a healthy market position.”

Although Revlon posted strong Q1 2022 EarningsThe damage caused by the pandemic and subsequent issues was too great for the legacy cosmetics company to mitigate.

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Company’s most recent earnings report good Claimed its highest first quarter in operating income since 2016, $479.6 million in net sales, an increase of 7.8% year over year.

But Perelman acknowledged that “supply chain challenges continue to impact” the company, noting Revlon’s strategy of doubling down on “core” brands and an aggressive digital strategy. Nevertheless, the company saw a net loss of $67 million during Q1.

Revlon was bought by former rival skincare and cosmetics brand Elizabeth Arden in 2016 made a report $870 million deal. The acquisition placed Revlon as the parent brand on the front and the ticker symbol on the NYSE.

“We expect to benefit from scale, an expanded global footprint and a significant presence across all major beauty categories and channels,” the company said. said at that time, “As a combined organization with net sales of approximately $3 billion, this acquisition will help further accelerate our growth trajectory, positioning us among the top beauty players and providing any company any company needs to be realized on a stand-alone basis. There will be unlocking far more upside than that.”

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Revlon, Inc. portfolio management Several legacy and newly established brands, such as Revlon and Elizabeth Arden, as well as Titanic brands, plus a number of celebrity fragrances including Almay, Cutex, and Britney Spears and Juicy Couture.

The 90-year-old company faces challenges with the rise of celebrity and influencer-owned makeup brands and collaborations, many of which have met with tremendous success.

For example, Kylie Jenner’s namesake brand, Kylie Cosmetics, may be owned by beauty behemoth Coty, Inc. was sold for one in early 2020. estimated $600 million, Coty also oversees popular drugstore brands (and Revlon rivals) Rimmel London and Sally Hansen.

Rihanna’s famous beauty line, Fenty Beauty, operates under luxury fashion and lifestyle house LVMH, whose beauty portfolio Introducing fan-favorite KVD Beauty & Benefit Cosmetics.

Although the exact valuation of Fenty Beauty has not been disclosed, Forbes sharp Being responsible for huge earnings for the beauty line has given Rihanna the status of a newly announced billionaire.

These purchases and partnerships have been fruitful: Coty saw net revenue increase 22% during the first quarter of this year, while LVMH saw 29% growth. Revlon haven’t achieved many brands.

As of Thursday afternoon, Revlon Inc. was down A brutal 84.5% in a one-year period.