90-Year-Old US Cosmetics Company 'Revlon' Files for Bankruptcy Protection

[Image source= Bloomberg]

[Asia Economy Reporter Byunghee Park] The 90-year-old American major cosmetics company Revlon has filed for bankruptcy protection, Bloomberg reported on the 15th (local time).

Revlon filed for Chapter 11 in the Southern District of New York. Chapter 11 is a system that allows a business to continue operating while preparing a debt repayment plan. Revlon reported assets worth $10 billion.

Revlon started by selling manicures during the Great Depression and grew into a global brand. It is currently present in more than 150 countries worldwide.

Revlon's financial condition worsened after acquiring competitor Elizabeth Arden in 2016. At that time, debt increased by more than $2 billion through loans and bond issuance.

In recent years, Revlon has struggled to properly read changing consumer preferences and faced difficulties competing with newly emerging brands, leading to a decline in sales. The COVID-19 pandemic dealt a fatal blow to Revlon, which was already struggling.

Billionaire investor Ron Perelman is the actual owner of Revlon. Perelman acquired Revlon in 1985 through his investment holding company MacAndrews & Forbes.

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