Multinational beauty brand Revlon has just filed for Chapter 11 bankruptcy protection, citing disruptions to supply chain networks, surging costs, and debt load.
The 90-year-old company filed at the U.S. Bankruptcy Court for the Southern District of New York and the proceedings include not only the United States branch of the company, but also international operating subsidiaries in Canada and the United Kingdom.
Revlon has been a mainstay in makeup aisles for decades and once featured supermodels like Cindy Crawford, Claudia Schiffer and Naomi Campbell, as well as actors including Halle Berry and Jessica Alba.
The company has been facing competition in recent years from celebrity cosmetics lines like Kylie Jenner's Kylie brand, which capitalized on large social media followings to sell products. Critics also note that Revlon has failed to keep pace with changing beauty standards for years, which only intensified during the COVID-19 pandemic, as lipstick sales plummeted with masks being worn by nearly everyone.
More recently, Revlon, along with many other companies, has experienced industry-wide supply chain issues along with higher costs, stating in March that logistical issues have hurt its ability to meet customer orders.
According to the court filing, Revlon listed assets and liabilities between US$1 billion and US$10 billion. The company has said that upon court approval, it expects to receive US$575 million in financing from its existing lenders, allowing it to keep its day-to-day operations running.