Revlon, Inc. is an American multinational corporation that deals with makeup, skin care, perfumes, and personal care. The company filed for Chapter 11 bankruptcy after struggling in recent years to compete against upstart, internet-focused brands. On June 16, 2022, Revlon filed for Chapter 11 bankruptcy protection after struggling with debt, growing competition, supply chain issues, and falling behind evolving beauty standards. In the past few months, Revlon, like many companies, has been dealing with supply chain challenges and higher costs across the industry.
In filings, Revlon said that the springs supply chain disruptions have led to fierce competition over ingredients used in making its products. Revlon said in March the logistics problems were hampering its ability to fulfill customers orders. Revlon, which has been struggling with high debt. Revlon’s struggles over the past few decades are due to the burden of massive debts and the competitiveness of a new generation of makeup brands.
Revlon began marketing its products abroad at the end of the 1950s. By 1957, Revlon was selling lipstick, and had expanded their sales internationally. For most of the 20th century, it was one of the most popular cosmetics brands in the United States. This is a major shift from Revlons glory days through most of the 20th century, where it was the second-largest beauty company by sales, only behind Avon.
This has almost doubled the revenues of Coty Inc., as well as launched it into mass-market cosmetics and professional haircare. The company also made news two years ago when Citigroup Inc. (C.N) accidentally sent Revlons creditors almost $900 million in their own money.
Revlon said it expected to get $575 million from its existing lenders after the court approves, allowing it to continue day-to-day operations. Revlon is locked in to a 108,000-square-foot lease for its headquarters at One New York Plaza, in Brookfield Properties financial district. One New York Plaza, in Brookfield Properties financial district. As Revlon undergoes a major corporate restructuring, shaped by a bankruptcy process, the company has secured the move it asked for out of 200 Park Avenue South.
Revlon filed for bankruptcy protection this week in the U.S., a legal process that allows an struggling company to keep trading while figuring out how to pay off a significant amount of debt. Revlon shares fell as much as 44% Thursday as a result of the bankruptcy filing, then closed down 13%. Revlon narrowly avoided bankruptcy last year, and has a pile of $3.3 billion of debt it must deal with.
June 16 (Reuters) – Cosmetics manufacturer Revlon Inc (REV.N) has filed for bankruptcy, falling victim to disruptions in the global supply chain which drove raw materials costs higher and caused suppliers to demand advance payments. Revlon, the 90-year-old multi-national cosmetics company, filed for Chapter 11 bankruptcy protection on Thursday, June 16, 2022, burdened with a slew of debt, supply chain network disruptions and spiraling costs. Like other companies, Revlon, which has an annual revenue of $2 billion (PS1.6 billion), has also suffered ingredient shortages and sharp increases in prices linked to a creaking global supply chain. The companys sales have suffered as it has faced supply bottlenecks and failed to rapidly shift into high-demand skincare products, losing shelf space in U.S. stores to startups championed by celebrities like Kylie Jenners Kylie Cosmetics and Rihannas Fenty Beauty.
Revlons financial meltdown isnothing too surprising, says Samantha Dover, the Mintel category head for Beauty and Personal Care Research. In its heyday, Revlon was second to only Avon in sales, but a sign of its declining fortunes, it is now out of the Top 20, according to a recent industry survey, with sales moving away from beauty aisles to online, with celebrity brands like Kylie Jenner-backed Kylie Cosmetics — it has nearly 26 million Instagram followers — and Rihannas Fenty Beauty being heralded as a new tastemaker. Revlon used to own such iconic brands as Almay and Elizabeth Arden. The party is over for one of the makeup industrys most storied names, as Revlon crumbles under the weight of its debt.
In 2008, celebrity makeup artist Gucci Westman was hired as the global artistic director for Revlon, representing the company in runway shows and branded events, and designing collections. In 1970, Revlon became the first American makeup company to showcase African-American models, idol Naomi Sims, in its advertisements. In the mid-1980s, Revlon lost out to Estee Lauder, and Armour Pharmaceutical Companies hemophilia-fighting factorate products contaminated many people around the world with HIV and Hepatitis C. Estee Lauder spent millions on countless magazine ads featuring Czech supermodel Paulina Porizkova, shot by famous Chicago fashion photographer Victor Screbneski. Revlon was slow to adjust to the trend for women to move away from brightly colored makeup such as red lipstick and toward a more subdued tone, beginning in the 1990s.
The Black Model also said that the company learned from celebrity launches such as Kylie Jenner-backed Kylie To Be More Nimble. Debra Pearlmans promise was for Revlon to be more modernized in order to compete with newer companies and changing consumer tastes. Revlon’s CEO — insisted Consumer demand for our products remains strong.
One of the leased sites is owned by the Elizabeth Arden makeup brand, which is an affiliate of Revlon. Revlon, founded by brothers Charles and Joseph Revson and Charles Lachman in 1932, started out selling nail polish. Michel Bergerac, who was hired as president by Charles Revson, continued expanding the holdings of the company.
In the 1970s, generations of women would spray Charleys perfume onto their wrists, singing its ubiquitous jingle. In 2011, PETA removed Revlon and other popular cosmetic brands from a list of companies that did not test their products on animals, after the organization learned that they had paid Chinese labs to test their cosmetics on rabbits and other animals. Revlon products are sold in 150 countries, with many of the companies worldwide locations including Mexico City, London, Paris, Hong Kong, Indonesia, Sydney, Singapore, and Tokyo.
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