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Revlon, crowded market beauty icon, bankruptcy file | News

New York — Cosmetics maker Revlon, who broke the racial barrier and set most of the beauty trends of the last century, filed for Chapter 11 Bankruptcy Protection.

Since its founding in New York City 90 years ago, the company has been a flagship storefront and oversees stable household names from Almei to Elizabeth Arden.

However, Revlon couldn’t keep up with the changing tastes and replaced the flashy red lipstick with a more subdued shade in the 1990s, slowing down chasing women.

In addition to losing market share to big rivals like Procter & Gamble, new cosmetic lines from Kylie Jenner and other celebrities are the massive social media that follows the famous face that stood in front of the product. I made good use of.

Revlon’s problem, already plagued by increased debt, was exacerbated only by a pandemic as lipstick replaced a new era of fashion with medical-grade masks.

In 2020, the first year of the pandemic, sales fell 21%, but recovered 9.2% in the company’s most recent reporting year when vaccines became widespread. In the latest quarter, which ended in March, Revlon’s sales increased by nearly 8%, but still lag behind pre-pandemic levels of over $ 2.4 billion annually.

The global supply chain turmoil that has puzzled hundreds of international companies in recent months has been too great for Revlon.

More corporate restructurings may occur in the consumer products sector in the future Recession threat And the cost of borrowing money rises.

Lebron said Thursday that it would receive $ 575 million in funding from existing lenders, with court approval, to continue its day-to-day operations.

Debra Perelman, appointed President and Chief Executive Officer of Revlon in 2018, said:

Perelman said demand for his products remains strong, but his “challenge capital structure” has limited ability to navigate.

During the heyday of the 20th century, Revlon recorded sales exclusively for Avon. According to a recent ranking by the fashion industry magazine WWD, it is currently ranked 22nd among cosmetics manufacturers.

Revlon became the first cosmetology company to feature the black model Naomi Sims in 1970. In the 1980s, the company brought to the fore both famous and undiscovered models such as Iman, Claudia Schiffer, Cindy Crawford and Christy Turlington to make every woman “unforgettable”. Promised to bring the cosmetics industry to life.

Perelman said in an interview with the Associated Press last year before the global supply chain locked up. She said she was optimistic about the future. She said the company doubled during the pandemic and became more online with services such as one-on-one virtual consultations through the Elizabeth Ardenline.

Perelman also said the company has learned to be more agile from the launch of celebrities and Lebron has regained market share.

With the exception of Canada and the United Kingdom, none of Revlon’s international operating subsidiaries are included in the proceedings. The application was filed at the US Bankruptcy Court in Southern New York.

According to the bankruptcy filing, the company has listed assets and liabilities of $ 1 billion to $ 10 billion.

Copyright 2022 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

Revlon, crowded market beauty icon, bankruptcy file | News

Source link Revlon, crowded market beauty icon, bankruptcy file | News

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