New York-based Revlon, owned by billionaire Ron Perelman’s MacAndrews & Forbes, is preparing to file for Chapter 11 bankruptcy amid a heavy debt load, according to the people aware of this matter. However, the potential filing is not final yet and could change.
Revlon’s shares plunged 53%, the biggest one-day drop on record, on Friday to close @ $2.05. Cosmetic giant Revlon, struggled because of the competition from Estee Launder Cos. and hosted a smaller company using social media to lure customers. The second reason that hit the company hard is continuous sales declining years before the pandemic.
The brand also narrowly averted multiple defaults by cutting debts and dealing with creditors. The company is talking with creditors and equity ownership of the firm to bring some changes to the firm.
Revlon is a renowned cosmetic company with more than 15 brands, including Elizabeth Arden and Elizabeth Taylor, which markets in nearly 150 countries worldwide.