The cosmetics company Revlon is applying for bankruptcy protection

A public security officer watches people stand in front of a billboard owned by Revlon taking their photos and showing them in Times Square in New York City’s borough on October 13, 2015. REUTERS / Carlo Allegri

June 16 (Reuters) – Revlon Inc (REV.N) applied for Chapter 11 bankruptcy protection on Wednesday after struggling to compete with online-focused up-and-coming brands in recent years.

The nail polish and lipstick manufacturer, controlled by billionaire Ron Perelman’s MacAndrews & Forbes, listed assets and liabilities between $ 1 billion and $ 10 billion, according to a filing with the US Bankruptcy Court for the Southern District of New York.

The bankruptcy filing comes days after the Wall Street Journal reported that Revlon had started talks with lenders ahead of impending debt to avoid bankruptcy.

Revlon’s sales have struggled amidst supply bottlenecks and a failure to quickly switch to in-demand skin care, and lost shelf space in US stores to startups backed by celebrities such as Kylie Jenner’s Kylie Cosmetics and Fenty Beauty by Rihanna.

In contrast, rival Coty Inc (COTY.N) has gained market share by investing heavily to improve supplies and meet a post-pandemic decline in demand for mascara and lipsticks.

Revlon, which has been run by Perelman’s daughter Debra Perelman since mid-2018, had a long-term debt of $ 3.31 billion as of March 31.

Revlon was formed in 1932 by brothers Charles and Joseph Revson and Charles Lachman, and was sold to MacAndrews & Forbes in 1985 and went public 11 years later. The company acquired Elizabeth Arden in a $ 870 million deal in 2016 to strengthen its skin care business.

But Revlon’s net sales in 2021 fell by 22% from 2017 levels in the midst of growing competition. The company also made headlines two years ago when Citigroup Inc (CN) accidentally sent nearly $ 900 million of its own money to Revlon’s lenders, instead of a small interest payment. However, a US federal judge ruled that it was not entitled to a refund. read more

Revlon, which started selling nail enamel almost 90 years ago, also houses several brands, including Britney Spears Fragrances and Christina Aguilera Fragrances.

Reporting of Maria Ponnezhath and Praveen Paramasivam in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta

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