According to persons familiar with the situation, cosmetics behemoth Revlon Inc. is likely to file for Chapter 11 bankruptcy as soon as next week, citing supply chain issues and a massive debt load.
The people, who requested not to be identified because they were discussing private conversations, said that talks about the potential file aren’t final and could alter. Revlon’s spokesperson declined to comment.
Reorg, a supplier of distressed debt news, was the first to report on the potential bankruptcy. On Friday, Revlon’s stock dropped 53 percent, the greatest one-day collapse on record, to settle at $2.05.
Revlon, situated in New York and controlled by MacAndrews & Forbes, a company founded by billionaire Ron Perelman, has struggled to compete with Estee Lauder Cos. and a slew of smaller competitors that use social media to attract clients. Sales had been dropping for years prior to the epidemic, which wreaked havoc on the corporation.
By making debt settlements with creditors, the company has narrowly avoided several defaults. According to one of the persons, the corporation is in talks with creditors, and stock ownership of the company is likely to change.
Elizabeth Arden and Elizabeth Taylor are among Revlon’s more than 15 brands, which company sells in roughly 150 countries.