Cosmetics giant Revlon preparingto file for bankruptcy next week

The distressed debt news provider Reorg first reported on potential bankruptcy. Revlon’s shares fell 53%, the biggest single-day decline on record, closing at $ 2.05 on Friday.

Cosmetics giant Revlon Inc. is preparing to file Chapter 11 bankruptcy next week as it faces supply chain issues and heavy debt burdens, according to people familiar with the matter.

People said negotiations on a potential filing were not final and could be changed, asking them not to be named when discussing private negotiations. Revlon’s representative declined to comment.

The distressed debt news provider Reorg first reported on potential bankruptcy. Revlon’s shares fell 53%, the biggest single-day decline on record, closing at $ 2.05 on Friday.

New York-based Revlon, owned by billionaire Ron Perelman and owned by MacAndrews and Forbes, fought between Estee Lauder Kos and several smaller companies that use social media to attract customers. Sales were declining for years before the epidemic hit, which hit the company even fiercely.

The brand narrowly avoided multiple defaults by cutting off credit transactions with creditors. One of the people said the company is talking to creditors and the firm’s equity ownership is likely to change.

Revlon has more than 15 brands, including Elizabeth Arden and Elizabeth Taylor, selling in over 150 countries.

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