Revlon bankruptcy news: Lipstick maker Revlon turns bankruptcy, debt breaks 90-year-old company’s back
New Delhi: Revlon Inc., a famous US company that makes cosmetics, has applied for bankruptcy. This 90-year-old giant was unable to repay its debt. At the same time, his condition had worsened due to supply chain and inflation. The company has applied for Chapter 11 bankruptcy. Under this, the company can continue its business and at the same time can make a plan to repay the debt. As of mid-March, the company had a debt of $3.31 billion. There has been a surge in demand for makeup products in recent months as people move out after the lockdown restrictions are lifted. But Revlon is facing a tough challenge from other brands.
This lipstick maker started talking to the borrowers to save its business. In March, the company had said that it was facing supply chain problems due to which it was unable to meet the demand. This New York-based company is owned by MacAndrews & Forbes, the company of billionaire businessman Ron Perelman.
According to sources, Revlon is in talks for the bankruptcy application but it is not final yet and it may change. Shares of the company fell 53 per cent on Friday. This is the biggest fall in the company’s shares in a single day. The company’s stock closed at $2.05. This New York-based company is owned by MacAndrews & Forbes, the company of billionaire businessman Ron Perelman.
Business in 150 countries
This company is known as Estee Lauder Cos. And facing stiff competition from other smaller companies. These companies are taking the help of social media to woo the customers. Even before the Kovid-19 epidemic, the company’s sales were declining and Corona did the right thing. Revlon has over 15 brands including Elizabeth Arden and Elizabeth Taylor. They are sold in about 150 countries.