Cosmetics big Revlon has filed for personal bankruptcy as the natural beauty model struggled to cope with mounting money owed it had constructed up to contend with on line shops and youth-targeted celebrity-backed make-up ranges.
The business enterprise owns a series of superior-profile providers such as Elizabeth Arden and Almay, and has also partnered with US stars Britney Spears, Megan Thee Stallion and Sofia Carson. Revlon bought Elizabeth Arden for $870m (£710 million) in 2016.
The company explained that the Chapter 11 submitting in the US individual bankruptcy courtroom for the southern district of New York would allow it to reorganise its “legacy funds structure” and improve its prolonged-term outlook, primarily amid liquidity constraints brought on by ongoing world-wide worries, such as “supply chain disruption and rising inflation”, as well as fulfil its obligations to its loan providers.
On receipt of the court docket approval the cosmetics huge mentioned it envisioned to receive $575 million in debtor-in-possession funding from its existing lender base, which in addition to its present working cash facility, would supply monetary liquidity to aid working day-to-working day functions.
“Today’s submitting will enable Revlon to provide our customers the legendary items we have sent for decades, while supplying a clearer route for our long term development,” reported Revlon boss Debra Perelman.
“By addressing these complicated legacy debt constraints, we count on to be ready to simplify our capital construction and drastically minimize our credit card debt, enabling us to unlock the entire prospective of our globally acknowledged manufacturers,” she extra.
Perelman thanked key stakeholders, together with personnel, buyers and sellers, for their “support’ all through the course of action.
Revlon’s management team explained it would carry on to operate the organization following the filing and as element of the reorganisation procedure, it would file “first day” motions to permit it to preserve functions.
The small business stated it intends to spend distributors and companions beneath customary terms for items and expert services obtained on or soon after the submitting date and to pay back its employees in the normal fashion and to continue key advantages “without disruption”.