Revlon Reportedly Readying To File For Bankruptcy Over Supply-Chain Struggles

Next week could see the end of the much-loved beauty brand, Revlon, as you know it. The company is currently facing problems with its supply chain as well as an accumulated large pile of debt. A Bloomberg report says that the company’s shares had suffered its biggest one-day drop last Friday, with its share price plunging 53% in a single day.

Revlon has always been in competition with other brands such as The Estée Lauder Companies. The emergence of smaller beauty companies that bank on their social media presence to entice a younger generation could have also caused Revlon to see a fall in their customers, Business of Fashion deduces.

Debra Perelman, the chief executive officer of Revlon, claims that demand for the products is still there. However, the beauty retailer is facing supply-chain difficulties that prevent them from efficiently getting products to the market.

The cosmetics giant has also narrowly evaded a US$3.1 billion debt looming overhead as it strikes deals with lenders and creditors to keep the business afloat, the Wall Street Journal reports.

Revlon is said to currently be in talks with creditors, and there is a likelihood the equity ownership will change in order to save the firm. 

As a much-loved brand, Revlon has shaped the beauty industry over the years. It currently has more than 15 brands across some 150 markets.

[via Business of Fashion and Reuters, Photo 105881977 © Casimirokt | Dreamstime.com]