Major beauty brand Revlon has filed for bankruptcy protection in the United States, amidst debt, disruptions to supply chains, and surging costs. 7NEWS
, a business can continue to operate under court protection, while plans to restructure their debts are proposed to creditors.For more Beauty related news and videos check outThe money will be financed from existing lenders, and will allow the multinational beauty company to keep 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.”Credit:The 90-year-old company has been a staple on store shelves for decades, but in recent years, has acquired heavy debt, whilst struggling with stiffer competition and an inability to keep up with changing beauty trends.
In 2020, sales fell 21 per cent to $US1.9 billion , but the company avoided bankruptcy by persuading enough creditors to extend their maturing debt.In the last quarter, Revlon’s sales began to rise as shoppers went back to pre-pandemic routines. The beauty company said in March that these logistical issues had hurt its ability to meet customer orders.