{"id":1521412,"date":"2022-06-18T06:05:21","date_gmt":"2022-06-18T10:05:21","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1521412"},"modified":"2022-06-18T06:05:25","modified_gmt":"2022-06-18T10:05:25","slug":"cosmetics-giant-revlon-files-for-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cosmetics-giant-revlon-files-for-bankruptcy\/","title":{"rendered":"Cosmetics Giant Revlon Files for Bankruptcy"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">12<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcosmetics-giant-revlon-files-for-bankruptcy%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1521412&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Cosmetics giant Revlon\u00a0filed for Chapter 11 <a href=\"https:\/\/www.theepochtimes.com\/t-bankruptcy\">bankruptcy<\/a> protection on Wednesday after struggling with debt and competition from online-focused upstart brands and amid soaring inflation levels plus <a href=\"https:\/\/www.theepochtimes.com\/t-supply-chain\">supply chain<\/a> issues.<\/p>\n<p>The company, owned by billionaire Ron Perelman\u2019s MacAndrews &#038; Forbes,\u00a0listed assets totaling $2.3 billion as of late April,\u00a0according to a June 15 filing with the U.S. Bankruptcy Court for the Southern District of New York cited by <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-06-16\/revlon-files-for-bankruptcy-facing-high-debt-supply-chain-pain\">Bloomberg<\/a>.<\/p>\n<p>However,\u00a0total debts are listed as $3.7 billion, which includes its 6.25 percent senior notes due in 2024, according to Bloomberg.<\/p>\n<p>The company also has\u00a010 loans with outstanding amounts totaling about $2.6 billion and maturing in the next three years, <a href=\"https:\/\/archive.ph\/o\/MXUKt\/https:\/\/www.bloomberg.com\/quote\/REV:US\">Bloomberg-compiled\u00a0data\u00a0show<\/a>.<\/p>\n<p>Chapter 11 filings allow a company to stay in business while it works out a plan of reorganization that is in the best interest of the creditors.<\/p>\n<p>Revlon confirmed it had filed for Chapter 11 bankruptcy protection in a <a href=\"https:\/\/investors.revlon.com\/news-releases\/news-release-details\/revlon-takes-step-towards-reorganizing-capital-structure-company\">statement<\/a> on Thursday and said it expects to receieve $575 million\u00a0in debtor-in-possession from its existing lender base, which will help to support its day-to-day operations.<\/p>\n<p>The filing will enable Revlon to continue offering its \u201ciconic products\u201d to consumers while \u201cproviding a clearer path for our future growth,\u201d said\u00a0Debra Perelman, Revlon\u2019s President and Chief Executive Officer.<\/p>\n<p>\u201cConsumer demand for our products remains strong\u2014people love our brands, and we continue to have a healthy market position. But our challenging capital structure has limited our ability to navigate macro-economic issues in order to meet this demand. By addressing these complex legacy debt constraints, we expect to be able to simplify our capital structure and significantly reduce our debt, enabling us to unlock the full potential of our globally recognized brands,\u201d said Perelman.<\/p>\n<p>Revlon added that it is aiming for a \u201cseamless\u201d\u00a0reorganization while thanking\u00a0key stakeholders, employees, customers, and vendors, for their support.<\/p>\n<p>Revlon was formed\u00a0in 1932 by brothers Charles and Joseph Revson and Charles Lachman and later sold to\u00a0MacAndrews &#038; Forbes in 1985 before going public 11 years later.<\/p>\n<p>The makeup giant bought Elizabeth Arden in an $870 million deal in 2016 to strengthen its skincare and fragrance business and expand its markets in Asia, and\u00a0has been\u00a0helmed by Perelman\u2019s daughter Debra Perelman since mid-2018.<\/p>\n<p>However, it has in recent years faced increasing competition from\u00a0startups backed by celebrities such as Kylie Jenner\u2019s Kylie Cosmetics and Fenty Beauty by Rihanna, both of which have garnered cult followings in part thanks to promotions by a slew of social media influencers.<\/p>\n<p>The bankruptcy filing comes just days after <a href=\"https:\/\/www.wsj.com\/articles\/cosmetics-maker-revlon-nears-chapter-11-filing-11654888492?mod=markets_major_pos15\">The Wall Street Journal reported<\/a> Revlon had initiated talks with lenders\u00a0to avoid bankruptcy ahead of maturities of debt that begin in 2023.<\/p>\n<p>The first of those\u00a0upcoming debt maturities is in September 2023 and involves a nearly $900 million interest payment that was accidentally paid off to the cosmetic company\u2019s lenders by a trader at Citigroup in 2020,\u00a0instead of the intended $8 million, WSJ reports.<\/p>\n<p>Citigroup Inc. blamed human error for the mistake, and the bank was\u00a0<a href=\"https:\/\/www.theepochtimes.com\/citigroup-cannot-recoup-revlon-payouts-after-nearly-900-million-gaffe-us-judge_3700595.html?utm_source=ai&#038;utm_medium=search\" target=\"_blank\" rel=\"noopener\">fined $400 million by U.S. regulators<\/a>\u00a0for failing to correct longstanding deficiencies in its risk and control systems.<\/p>\n<p>U.S. District Judge Jesse Furman in Manhattan ruled\u00a0in 2020 that the lenders could keep that money, stating that the\u00a0transfers were \u201cfinal and complete transactions, not subject to revocation.\u201d Citigroup has appealed that decision.<\/p>\n<p>During last month\u2019s first quarter 2022 results <a href=\"https:\/\/seekingalpha.com\/article\/4508311-revlon-inc-rev-ceo-debra-perelman-on-q1-2022-results-earnings-call-transcript\">earnings call<\/a>, Revlon said it was hoping to \u201censure\u00a0sufficient liquidity to support both our growth and our capital structure\u201d amid supply chain disruptions and\u00a0other \u201cemerging macroeconomic challenges that continue to impact businesses across most industries.\u201d<\/p>\n<p>Revlon <a href=\"https:\/\/investors.revlon.com\/news-releases\/news-release-details\/revlon-reports-first-quarter-2022-results\">posted net sales<\/a> of $479.6 million\u00a0in the first quarter of 2022, compared to\u00a0$445.0 million\u00a0during the prior-year period, marking an increase of\u00a0$34.6 million, or 7.8 percent.<\/p>\n<p>Meanwhile,\u00a0operating income was\u00a0$23.7 million\u00a0in the first three months to March,\u00a0compared to an operating loss of\u00a0$12.7 million\u00a0during the prior-year period, an improvement of\u00a0$36.4 million.<\/p>\n<p>Reported net loss was\u00a0$67.0 million\u00a0in the first quarter, versus a\u00a0$96.0 million\u00a0net loss in the same period a year prior.<\/p>\n<p>Despite reports of an impending Chapter 11 filing, shares of Revlon\u00a0<a href=\"https:\/\/seekingalpha.com\/news\/3848492-revlon-stock-surges-over-100-despite-bankruptcy-likelihood\">surged<\/a> in the first half of trading earlier this week on Tuesday. They are currently trading up 20.32 percent as of June 16.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-katabella-roberts\"><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Katabella Roberts is a reporter currently based in Turkey. She covers news and business for The Epoch Times, focusing primarily on the United States.\n<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Cosmetics giant Revlon\u00a0filed for Chapter 11 bankruptcy protection on Wednesday after struggling with debt and competition from online-focused upstart brands and amid soaring inflation levels plus supply chain issues.The company,<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1521412","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1521412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1521412"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1521412\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1521412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1521412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1521412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}