The company is suffering from supply problems but also from the inflation that is rampant in the United States.
Ninety years after launching its nail polish, Revlon filed for bankruptcy protection on Wednesday to negotiate with creditors while continuing to operate. The group, which achieved last year 2.1 billion dollars in turnover and a loss of 207 million, is crippled with debts: 3.3 billion dollars, while its assets were not valued at the end of March than 2.4 billion.
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This bankruptcy filing is a setback for financier Ron Perelman, whose fund took control of Revlon in 1985 after a hostile takeover with Michael Milken, the king of “junk bonds”. While the cosmetics market is growing steadily, Revlon has been failing and underperforming industry giants France’s L’Oréal and America’s Estée Lauder. His friendly takeover bid for compatriot Elizabeth Arden in 2016 was not enough to put Revlon back on track.
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Owner of Juicy Couture, Elizabeth Taylor, Britney Spears, Christina Aguillera and AllSaints perfumes, the Revlon group, led by Devra Perelman, Ron’s daughter, has not been able to take the turn of social networks. It has steadily lost market share to industry giants and influencer-launched brands, and has never managed to gain a foothold in China. More recently, the group says it has suffered from global logistics chaos and inflation.
“Consumer demand for our products remains strong, assures Debra Perelman. But our difficult capital structure has limited our ability to manage macroeconomic issues to meet this demand. » The negotiations carried out under the aegis of a New York court should lead to the takeover of Revlon by its creditors. “Once the debt is significantly reduced”Revlon hopes to be able to “unleash the full potential of (its) globally recognized brands”.
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