New York: After years of fierce competition from rivals focusing on online sales and supply chain issues, the US cosmetics giant Revlon has filed for bankruptcy.
The corporation filed for Chapter 11 bankruptcy protection late Wednesday, claiming that its debt was between $1 billion and $10 billion.
During the first quarter of this year, Revlon disclosed long-term liabilities of $3.3 billion.
Our iconic items will continue to be available to our customers, and we will have a clear roadmap for our future growth,” CEO Debra Perelman said in a statement.
It is possible for businesses in the United States to file for Chapter 11 reorganization bankruptcy, which is also known as a reorganization bankruptcy.
If its bankruptcy is allowed by the court, the company expects to get $575 million in funding from its lenders.
Ronald Perelman and daughter Debra Perelman are the owners of Revlon, which reported a net loss of $67 million between January and March.
More than 150 countries in which the company has operations are affected by the global supply chain problem and excessive inflation. Elizabeth Arden is one of the brands that the corporation owns, as well as Almay.
Due to rising competition, Revlon’s revenue has been impacted in recent years as well.
After learning that Citibank had transferred $900 million to Revlon’s debtors by mistake in August of 2020, the business found itself in hot water.
Afterward, the bank filed a complaint with the court against an investment fund that had refu