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.
READ | Meet the highest paid CEO of India’s IT sector
