More than 5.7 million people have “adored” the publication of Kylie Jenner, on Instagram, on June 8. The American reality TV star, half-sister of Kim Kardashian, says she took her daughter Stormi there to an Ulta Beauty store in Los Angeles to see the “novelties” of its brand. In this beauty supermarket, the 4-year-old girl, with nails painted with glitter, fills a basket with lip glosses, eyeshadows and other palettes from the brand that has made her mother’s fortune since its 51% buyout. by the American Coty, in 2019.
This video says it all about the ongoing revolution within the American cosmetics industry, of which Revlon is one of the first victims. In New York, on June 16, the manufacturer announced that it had applied for Chapter 11 protection to set up a recovery plan and avoid bankruptcy. Its president, Debra G. Perelman, is sure that the operation “will allow Revlon to offer its customers the iconic products it has offered them for decades”everyone knows how much the group, present in 150 countries, will struggle to get out of this bad patch.
Dismantling? Refocusing on its founding brand? What solutions will be put in place to save the group with 5,700 employees? “Few candidates will dare to invest to straighten it out”says an expert in the sector.
king of debt
The firm built its empire during the launch of an opaque nail polish in 1932, then imposed itself on the perfume market, with Charlie, a floral juice launched in 1972. Then, the success comes from the make-up that embody the models of the 1990s, Cindy Crawford, Christy Turlington and Claudia Schiffer. On Wall Street, the group became a figure of American capitalism during the hostile public takeover bid which enabled billionaire Ron Perelman to take it over in 1985 for 2.7 billion dollars (2, €68 billion).
The latter is slow to diversify the company. In 2016, he bought Elisabeth Arden, a skincare brand, for $1.03 billion. “The Debt King”“the king of debt”, says The New York Times in a portrait published in January, had then obtained all the necessary loans. Most were mortgaged on the heritage of the businessman, now 79 years old. In 2020, as the pandemic shattered Revlon’s business, Mr. Perelman sold part of his art collection, his yacht and a private jet to bail out the business. But he failed to reduce his debt. Today it stands at $3.7 billion. Despite a turnover up 9%, to 2.1 billion dollars at the end of 2021, its losses reached 207 million dollars.
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