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| Edited By: DNA Web Team |Source: DNA webdesk |Updated: Jun 11, 2022, 02:37 PM IST
Major global cosmetics company Revlon Inc. is laying down the groundwork to file for Chapter 11 bankruptcy amid heavy debt burden and struggles with the supply chain, a Bloomberg report said citing persons aware of the matter.
The discussions are ongoing but the move is not final and there could be a change in the direction. The report said that Revlon had declined to make a comment.
On Friday, shares of Revlon saw a record one-day dive of 53 percent. The potential bankruptcy of Revlon was first reported by Reorg, a news outlet focussing on debt coverage.
Based out of New York, Revlon is owned by MacAndrews & Forbes, holding company by billionaire Ron Perelman.
Revlon has been facing stiff competition from legacy rival Estee Lauder and also from a number of smaller brands who have been winning the social media game. The sales of the company have reportedly been dipping from even before the Covid-19 pandemic.
Revlon has a long-term debit of over $3 billion and has been able to evade default on multiple occasions but cutting debt deals, it was reported. The cosmetics giant reported has an expenditure of $248 million in the previous year as annual interest to be paid. The cosmetic giant which has customers in over 150 global markets boasts over 15 brands in its portfolio.
