Upon receipt of court approval, the company expects to receive $575m in debtor-in-possession financing from its existing lender base, which in addition to its existing working capital facility, will provide liquidity to support day-to-day operations.
New York-based Revlon, owned by billionaire Ron Perelman’s MacAndrews & Forbes, comprises more than 15 brands, including Elizabeth Arden, Revlon, Almay and Cutex, which it markets in nearly 150 countries.
None of Revlon’s international operating subsidiaries are included in the US Chapter 11 proceedings, except Canada and the UK.
According to a Bloomberg report, Revlon has struggled to compete with newer brands that advertise heavily on social media. The pandemic provided another blow, and more recently, the company battled to address supply chain problems and inflation that dented margins. Revlon narrowly staved off multiple previous defaults by cutting deals with creditors to rework its obligations out of court.
She continued, “Consumer demand for our products remains strong – people love our brands, and we continue to have a healthy market position. But our challenging capital structure has limited our ability to navigate macro-economic issues in order to meet this demand.
“By addressing these complex legacy debt constraints, we expect to be able to simplify our capital structure and significantly reduce our debt, enabling us to unlock the full potential of our globally recognised brands. We are committed to ensuring the reorganisation is as seamless as possible for our key stakeholders, including our employees, customers and vendors, and we appreciate their support during this process.”