A widespread dilemma has found American-made cosmetics company Revlon in turmoil. Reports state the brand is set to file for chapter 11 bankruptcy due to a long decline in sales, unfulfilled supply chain demands, and more.  It has now become a near reality for the company, which also houses brands including Almay, Elizabeth Arden New York, Mitchum, and CND, to name a few.

Reuters recorded a record-breaking drop as Revlon’s stock plummeted by 46 percent on Friday, June 10. The company’s stock now stands at $1.17 per share. According to Women’s Wear Daily, Ronald Perelman, the largest shareholder of the brand, began to liquidate his assets in 2020, illustrating the company’s decline. 

Business of Fashion then confirmed that “its annual interest expense was nearly $248 million last year, and it reported $132 million of liquidity as of March 31.” The publication also made note of a call back in May with chief executive officer Debra Perelman, where she acknowledged the company’s decline and expressed the inability to meet product demand with inflation at an all-time high. 

Revlon’s potential bankruptcy is also partially brought on by more than 3 billion dollars of long-term debt. In hopes of steering the company away from bankruptcy back in 2020, Revlon sought out several potential lenders to aid the debt accumulated, as reported by the Business of Fashion. Although it was not able to meet its intended funding goal, it did gain refinancing of $1.8 billion dollars of debt. 

Allure reached out to representatives at Revlon, who declined to comment at this time.

More on eye makeup:

Now, watch Alisha Wainwright’s Wash Day Diary:

Don’t forget to follow Allure on Instagram and Twitter.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *