Written by: Katie Scott, Business Reporter
Revlon announced on Friday (17 June) that it has filed for bankruptcy in the US after several difficult years. Its shares dropped more than 30 percent upon the announcement.
The company, which was founded 90 years ago in New York, struggled when lipstick sales plummeted thanks to mask wearing during the Pandemic. However, in its filing, the company also pointed to inflation; labour shortages; demands from suppliers to pay upfront and supply chain disruptions. Revlon's chief restructuring officer Robert Caruso said: “For example, one tube of Revlon lipstick requires 35 to 40 raw materials and component parts, each of which is critical to bringing the product to market.”
Revlon sells its products in more than 150 countries and also owns Elizabeth Arden, Almay and Cutex.
The company is now awaiting court approval to receive $575m (£467m) in financing from its existing lenders. This, says Sky News, “will allow it to keep its day-to-day operations running”. Debra Perelman, Revlon’s president and CEO since 2018, remained optimistic and said: “Today's filing will allow Revlon to offer our consumers the iconic products we have delivered for decades, while providing a clearer path for our future growth.”
