In the world of cosmetics, there are few brands that have been around as long and endured more than Revlon. But on Thursday morning they too filed for Chapter 11 bankruptcy protection after nearly 100 years in business.
In a statement, the company said they were feeling pressure from “macro-economic issues” like legacy debt and supply-chain disruptions.
They will receive $575 million in debtor-in-possession financing, which will allow them day-to-day operations of the company.
“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,” said Revlon President and CEO Debra Perelman in a company statement. “Consumer demand for our products remains strong – people love our brands, and we continue to have a healthy market position.”
The COVID-19 pandemic had a significant impact on Revlon, but despite solid earnings in the first quarter of 2022, its effects were too overwhelming to mitigate.
The reports show that Revlon hit its highest first-quarter operating income in six years with $479.6 million – an impressive year-over-year 7.8% increase.
The CEO of Revlon spoke about their struggles in the supply chain and how they are doubling down on core brands while implementing an aggressive digital strategy. As a result, there was a $67 million net loss for the past quarter.
In 2016, former rival brand Elizabeth Arden acquired Revlon in a deal reported to be around $870 million. The purchase left the company with new leadership forward-facing and the ticker symbol on the NYSE.
“We expect to benefit from greater scale, an expanded global footprint and a significant presence across all major beauty categories and channels,” said Revlon in 2016. “As a combined organization with net sales of approximately $3 billion, this acquisition will help to further accelerate our growth trajectory, position us among the top beauty players and unlock far greater upside than either company would have realized on a stand-alone basis.”
The company that would eventually become known as Revlon was founded by three men, brothers Charles and Joseph Reussen and Charles Lachman in 1932. Through the years, the company thrived before going public on the stock exchange market in 1996. Revlon has featured many brands with some of the biggest names in entertainment.
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