Global cosmetics behemoth Revlon files for bankruptcy

Revlon Inc., a global cosmetics giant,  filed for Chapter 11 bankruptcy protection after struggling to compete with online-focused upstart brands in recent years.

The lipstick and nail polish maker, 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 a day after the Wall Street Journal reported Revlon had begun talks with lenders ahead of looming debt maturities to avoid bankruptcy.

Revlon’s sales have struggled amid supply bottlenecks and a failure to swiftly switch to in-demand skincare, losing shelf space in US stores to startups backed by celebrities such as Fenty Beauty by Rihanna and Kylie Jenner’s Kylie Cosmetics.

Contrastly, rival Coty Inc. has gained market share by investing heavily to improve supplies and cater to a post-pandemic rebound demand for mascara and lipsticks.

Revlon has been led by Perelman’s daughter Debra Perelman since mid-2018. The cosmetics firm has had long-term debt of $3.31 billion as of March 31, 2022.

Revlon was founded by Charles Lachman and brothers Charles and Joseph Revson. The firm was sold to MacAndrews & Forbes in 1985 and went public 11 years later. Revlon bought Elizabeth Arden for $870 million in 2016 to strengthen its skincare business.