Revlon, a cosmetics maker that broke racial barriers and dictated beauty trends for much of the last century, has filed for Chapter 11 bankruptcy protection.
Already weighed down by rising debt, Revlon’s problems only intensified with the pandemic as lipstick gave way to a new era in fashion, this one featuring medical-grade masks.Sales dropped 21 per cent in 2020, the first year of the pandemic, though those sales rebounded 9.2 per cent in its most recent reporting year with vaccines widespread. In the latest quarter that ended in March, sales rose nearly 8 per cent, but still lag pre-pandemic levels in excess of $US2.4 billion a year.
“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,” said Debra Perelman, who was named Revlon president and CEO in 2018.Her father, billionaire Ron Perelman, backs the company through MacAndrews & Forbes, which acquired the business through a hostile takeover in the late 1980s. Revlon went public in 1996.
Perelman, in an interview with The Associated Press late last year before global supply chains locked up, said she was optimistic about the future. The company doubled-down during the pandemic to get more online with services like one-on-one virtual consultations through its Elizabeth Arden line, she said.
Sad, they have great products.