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Bloomberg
Cosmetics giant Revlon Inc is preparing to file for Chapter 11 bankruptcy as soon as next week as it battles supply chain problems and a heavy debt load, according to people with knowledge of the matter.
Talks around the potential filing aren’t final and could change, said the people, who asked not to be named discussing private negotiations. A representative for Revlon declined to comment.
Distressed debt news provider Reorg first reported on the potential bankruptcy. Revlon’s shares plunged 53%, the biggest one-day drop on record, to close at $2.05.
New York-based Revlon, owned by billionaire Ron Perelman’s MacAndrews & Forbes, struggled amid competition from Estee Lauder Cos and a host of smaller companies using social media to lure customers. Sales had been declining years before the pandemic, which also hit the company hard.
The brand has narrowly averted multiple defaults by cutting debt deals with creditors. The company is talking with creditors and equity ownership of the firm is likely to change.