Revlon
American cosmetics major Revlon files for bankruptcy
American cosmetics and skin care products giant Revlon has filed for bankruptcy, media reports said.
Revlon has been facing stiff competition from digital native upstart brands and has been unable to overcome supply chain constraints that have been hurting its ability to service demand.
The company filed Chapter 11 protection as per the American law to manage its debts, which it said stood between $1 billion and $10 billion, AFP reported.
Revlon, which is owned by billionaire Ron Perelman's MacAndrews & Forbes and run by his daughter Debra Perelman, had started discussions with the lenders sometime back and ahead of the next year's debt maturity.
According to news agency Reuters, Revlon had long-term debt of $3.31 billion as of March.
"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," CEO Debra Perelman said in a statement.
As per the American laws, Chapter 11, known as reorganization bankruptcy, allows firms to restructure themselves while being protected from creditors and continuing to operate.
Revlon reported a net loss of $67 million from January to March.
The company, whic has operations in more than 150 countries, has suffered from the global supply chain disruptions and soaring inflation.
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