sunny.png
Wednesday September 28th, 2022 11:11AM

Revlon, beauty icon in crowded market, files for bankruptcy

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Revlon, a cosmetics maker that broke racial barriers and dictated beauty trends for much of the last century, has filed for Chapter 11 bankruptcy protection.

The company has been a mainstay on store shelves since its founding 90 years ago in New York City as it oversaw a stable of household names, from Almay to Elizabeth Arden.

Revlon failed to keep pace with changing tastes, however, slow to follow women as they traded flashy red lipstick for more muted tones in the 1990s.

In addition to losing market share to big rivals like Procter & Gamble, newcomer cosmetic lines from Kylie Jenner and other celebrities successfully capitalized on the massive social media following of the famous faces that fronted the products.

Already weighed down by rising debt, Revlon’s problems only intensified with the pandemic as lipstick gave way to a new era in fashion, this one featuring medical-grade masks.

Sales dropped 21% in 2020, the first year of the pandemic, though those sales rebounded 9.2% in its most recent reporting year with vaccines widespread. In the latest quarter that ended in March, sales rose nearly 8%, but still lag pre-pandemic levels in excess of $2.4 billion a year.

The global supply chain disruptions that are hobbling hundreds of international companies in recent months were too much for Revlon, which barely escaped bankruptcy in late 2020 by persuading bondholders to extend its maturing debt.

There may be more corporate restructurings in the consumer products sector ahead with the threat of an economic recession and the rising costs of borrowing money.

Revlon said Thursday that upon court approval, it expects to receive $575 million in financing from its existing lenders, which will allow it to keep its day-to-day operations running.

“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 Debra Perelman, who was named Revlon president and CEO in 2018.

Her father, billionaire Ron Perelman, backs the company through MacAndrews & Forbes, which acquired the business through a hostile takeover in the late 1980s. Revlon went public in 1996.

Perelman said that demand for its products remain strong, but its “challenging capital structure" offered limited ability to navigate.

During its heyday in the 20th century, Revlon trailed only Avon in sales. It now holds the 22nd spot among cosmetics makers, according to a recent ranking by fashion trade journal WWD.

Revlon became the first beauty company to feature a Black model in 1970, Naomi Sims. In the 1980s, the company energized the cosmetics industry by putting both famous and yet-to-be-discovered models like Iman, Claudia Schiffer, Cindy Crawford and Christy Turlington front and center, promising to make all women “unforgettable.”

Perelman, in an interview with The Associated Press late last year before global supply chains locked up, said she was optimistic about the future. The company doubled-down during the pandemic to get more online with services like one-on-one virtual consultations through its Elizabeth Arden line, she said.

Perelman also said that the company was learning from celebrity launches to be more nimble and that Revlon had regained market share.

None of Revlon’s international operating subsidiaries are included in the proceedings, except for Canada and the United Kingdom. The filing was made in the U.S. Bankruptcy Court for the Southern District of New York,

The company listed assets and liabilities between $1 billion and $10 billion, according to its bankruptcy filing.

_____

Follow Anne D’Innocenzio: http://twitter.com/ADInnocenzio

  • Associated Categories: Associated Press (AP), AP National News, AP Online National News, Top General short headlines, AP Entertainment, APOnline Celebrity News, AP Business, AP Business - Corporate News
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Revlon, beauty icon in crowded market, files for bankruptcy
Revlon, the 90-year-old multinational cosmetics company, is filing for Chapter 11 bankruptcy protection, weighed down by debt load, disruptions to its supply chain network and surging costs
10:19AM ( 12 minutes ago )
Wall Street gets back to tumbling after one day of respite
Markets worldwide are back to tumbling on Thursday as worries about a fragile economy roar back to the fore
10:16AM ( 16 minutes ago )
Ferrari to make 80% hybrid and full-electric range by 2030
Italian luxury sportscar maker Ferrari has outlined an electrification strategy that calls for 40% full-electric and 40% hybrid models by 2030
10:09AM ( 22 minutes ago )
Associated Press (AP)
Beyoncé announces new album 'Renaissance' to drop July 29
Beyoncé has revealed the title and release date for her next album, with the 16-track “Renaissance” set to drop July 29
9:39AM ( 52 minutes ago )
Revlon files for bankruptcy protection amid heavy debt load
Revlon, the 90-year-old multinational beauty company, has filed for Chapter 11 bankruptcy, weighed down by a heavy debt load, disruptions to its supply chain network and surging costs
8:39AM ( 1 hour ago )
Kevin Spacey 'strenuously' denies sex charges, granted bail
Kevin Spacey's lawyer has told a London court that the actor  “strenuously denies” allegations of sexual assault
6:24AM ( 4 hours ago )
AP Entertainment
Lawyer: Cosby must be held responsible for sex abuse of teen
An attorney for a woman suing Bill Cosby told jurors they must hold him responsible for sexually abusing her at the Playboy Mansion when she was 16 years old in 1975
4:39PM ( 17 hours ago )
Dolly Parton gives $1M to infectious disease research, again
Dolly Parton is donating $1 million to pediatric infectious disease research at Vanderbilt University Medical Center in Nashville
12:21PM ( 22 hours ago )
'In our hearts': London remembers 72 Grenfell fire victims
Prince William and British politicians have joined in memorial services to mark five years since 72 people died in London’s Grenfell Tower blaze, the worst domestic fire on British soil since World War II
4:42PM ( 1 day ago )
APOnline Celebrity News
Wall Street gets back to selling, a day after brief reprieve
Wall Street got back to selling on Thursday, reversing course a day after a climbing on hopes that the Federal Reserve's huge interest rate hike it made this week won't be a common practice in its ongoing fight against inflation
9:44AM ( 48 minutes ago )
Germany steps up calls to save energy as Russia reduces gas
Germany’s vice chancellor is stepping up an appeal for the country's residents to save energy after Russia’s Gazprom announced significant cuts in natural gas deliveries through a key pipeline
9:38AM ( 54 minutes ago )
Production at bedeviled baby formula factory halted by storm
Severe weather has forced Abbott Nutrition to pause production at a Michigan baby formula factory that had just restarted
8:43AM ( 1 hour ago )
AP Business
Yellowstone floodwaters threaten water supplies in Montana
Damaging floodwaters that tore through Yellowstone National Park menaced communities downstream where residents cleaned up from the mess and kept an eye on rising river levels
12:30AM ( 10 hours ago )
After Yellowstone, floodwaters menace Montana's largest city
Floodwaters that rushed through Yellowstone National Park and surrounding communities earlier this week are moving through Montana’s largest city, flooding farms and ranches and forcing the shutdown of its water treatment plant
8:01PM ( 14 hours ago )
After Yellowstone, floodwaters near Montana's largest city
Floodwaters that rushed through Yellowstone National Park and surrounding communities earlier this week are moving through Montana’s largest city, flooding farms and ranches and forcing the shutdown of its water treatment plant
3:31PM ( 19 hours ago )
AP Business - Corporate News
Wall Street gets back to tumbling after one day of respite
Markets worldwide are back to tumbling on Thursday as worries about a fragile economy roar back to the fore
10:16AM ( 16 minutes ago )
Ferrari to make 80% hybrid and full-electric range by 2030
Italian luxury sportscar maker Ferrari has outlined an electrification strategy that calls for 40% full-electric and 40% hybrid models by 2030
10:09AM ( 23 minutes ago )
Montana's largest city restarts water plant after flood
Montana’s largest city has re-started its water plant after shutting it down amid record flooding that’s caused widespread damage in Yellowstone National Park and surrounding communities
9:59AM ( 33 minutes ago )
Bank of England hikes interest rates but resists bolder move
The Bank of England has raised interest rates by a quarter-percentage point, shrugging off pressure for a bolder move to combat price increases that have pushed inflation to a 40-year high
9:55AM ( 38 minutes ago )
Feds taking first steps toward revising race, ethnic terms
The federal government is taking preliminary steps toward revising racial and ethnic classifications that haven't been changed in a quarter century following calls for better categories for how people identify themselves in federal data gathering
9:54AM ( 39 minutes ago )