One of the most recognizable brands in the cosmetics section of your local drugstore has officially filed “Chapter 11” in the U.S. Bankruptcy Court.
According to Revlon, they are trying to reorganize its capital structure in a challenging economic world.
The filing will allow Revlon to keep running in all their markets, driving future growth while navigating the “ongoing impacts of global supply chain challenges and rising inflation,” the company wrote. Revlon’s Canadian subsidiary is included in the Chapter 11 proceedings, too.
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Now, Revlon is expecting to borrow $575 million from its lenders to help them out. That liquid cash will help support day-to-day operations, and $75 million will go to “retire existing foreign debt.”
With the Chapter 11 filing, the company is set to “strategically reorganize its legacy capital structure and improve its long-term outlook.”
Revlon’s President and Chief Executive Officer Debra Perelman said in a statement that “Consumer demand for our products remains strong – people love our brands, and we continue to have a healthy market position.”
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“But our challenging capital structure has limited our ability to navigate macro-economic issues in order to meet this demand. By addressing these complex legacy debt constraints, we expect to be able to simplify our capital structure and significantly reduce our debt, enabling us to unlock the full potential of our globally recognized brands.”
Perelman is the daughter of billionaire investor Ronald Perelman, who owns the 90-year-old company.
The company said it will continue to “operate seamlessly” following the filling and “intends to pay vendors and partners under customary terms for goods and services received on or after the filing date and to pay its employees in the usual manner and to continue their primary benefits without disruption.”