Cosmetic company Revlon to file for bankruptcy

The company is preparing to file for chapter 11 bankruptcy

Revlon, the American cosmetic giant, is to soon file for bankruptcy. The company recorded having debts of more than $3 billion. The company saw a decline before the pandemic. Tough social media competition, supply chain barriers, and huge debts are the reasons for the decline in its sales. The company also hit a new low when its share dropped by 53 percent and closed at $2.05.The company is preparing to file for chapter 11 bankruptcy. Reorg Research first reported the bankruptcy. The annual interest expenses of the company were recorded at around $248 million, and liquidity at nearly $132 million.

The make-up and cosmetics industry was affected severely during the pandemic but recovered quickly. High demand for make-up products was observed, but Revlon did not experience it. Their disrupted supply chain could be a reason. The American cosmetics company was founded in 1932 by three partners; Joseph Revson, Charles Revson, and Charles Lachman. It started as a nail polish brand and is now serving products across make-up and skincare. Currently, the company is owned by Ron Perelman’s MacAndrews & Forbes. The company’s products are sold in 150 countries around the world. It was one of the first companies to launch make-up products with skincare benefits. The company has more than 15 brands under them that serve skin care, hair care, perfume, etc.