Cosmetics model Revlon has filed for chapter, after the US firm struggled to deal with mounting money owed it had amassed to compete with on-line retailers.
Charles and Joseph Revson based Revlon in 1932 and it has since constructed a portfolio of manufacturers together with Elizabeth Arden, Almay and Cutex.
The 90-year-company has additionally had fragrances fronted by Christina Aguilera and Britney Spears.
Nevertheless, based on court docket filings within the New York, Revlon has listed property and liabilities of between $1bn and $10bn.
In recent times it has misplaced shelf house and gross sales to starts-ups backed by Kylie Jenner’s Kylie Cosmetics and Rhianna’s Fenty Magnificence
Provide points have additionally impacted income, made worse by COVID-19 and leading to shortages which have tipped Revlon into chapter 11.
Against this, competitor Coty has gained market share by investing to enhance the inventory of merchandise.
“Our difficult capital construction has restricted our potential to navigate macro-economic points,” mentioned Debra Perelman, Revlon chief government since mid-2018 and daughter of Ron Perelman, who owns its controlling shareholder MacAndrews & Forbes.
The cosmetics model began off by promoting enamel and was bought to MacAndrews & Forbes in 1985, itemizing 11 years later.
It purchased Elizabeth Arden for $870m in 2016, whereas additionally taking up manufacturers equivalent to Britney Spears Fragrances and Christina Aguilera Fragrances.
The corporate’s gross sales have lagged lately and in 2021 fell 22% from its 2017 ranges.
It additionally hit the headlines in 2020, when Citigroup by chance despatched practically $900m of its personal cash to Revlon lenders.
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Revlon has had long-term debt of $3.31bn as of 31 March and mentioned on Thursday it anticipated to get $575m in debtor-in-possession financing from its present lender base upon receipt of court docket approval.
Shares in Revlon have halved since experiences mentioned it was nearing a chapter submitting.
Revlon narrowly averted chapter in 2021 following a stand-off between its house owners and lender Carl Icahn.