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US cosmetics giant, Revlon files for bankruptcy

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Revlon, a 90-year-old cosmetics big, has filed for Chapter 11 chapter safety due to its crippling debt and mounting movie star competitors.

 

The corporate has been a mainstay on retailer cabinets since its founding 90 years in the past in New York Metropolis, overseeing a secure of family names, from Almay to Elizabeth Arden.

 

Revlon didn’t preserve tempo with altering tastes, gradual to comply with ladies as they traded flashy purple lipstick for extra muted tones within the Nineties.

 

Along with shedding market share to huge rivals like Procter & Gamble, newcomer beauty strains from Kylie Jenner and different celebrities efficiently capitalized on the large social media following of the well-known faces that fronted the merchandise.

 

Already weighed down by rising debt, Revlon’s issues solely intensified with the pandemic as lipstick gave approach to a brand new period in trend, this one that includes medical-grade masks.

 

Revlon, identified for its signature nail polish and lipstick, reported long-term liabilities of $3.3 billion within the first quarter.

 

“Immediately’s submitting will enable Revlon to supply our customers the long-lasting merchandise we now have delivered for many years, whereas offering a clearer path for our future development,” CEO Debra Perelman stated in an announcement.

 

The corporate stated it expects to obtain $575 million in financing from its lenders if its chapter is authorized in court docket.

 

The corporate was based in 1932 by brothers Charles and Joseph Revson and Charles Lachman. Revlon (REV) went public in 1996 and in 2016 purchased by Elizabeth Arden in an $870 million skincare wager to fend off competitors. It homes a number of prime manufacturers, together with Britney Spears Fragrances and Christina Aguilera Fragrances.

 

It additionally made headlines two years in the past when Citigroup (C) by accident despatched practically $900 million of its personal cash to Revlon’s lenders. A decide dominated that the financial institution could not get well the cash.

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