[vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”administrator,editor,author,armember”][vc_column][vc_column_text]
Iconic U.S. cosmetics and fragrance company Revlon announced on Thursday (June 16) that it has filed for Chapter 11 bankruptcy under the U.S. bankruptcy system, allowing it to continue operations while it develops a recovery plan.
In a document filed with a New York court on the evening of 15 June, Revlon revealed that it had between one and ten billion dollars in debt and announced long-term liabilities of 3.3 billion dollars in the first quarter of 2022.
In the United States, Chapter 11 is a mechanism that allows a company that is unable to repay its debt to restructure while continuing to operate. This placement under the bankruptcy regime “will allow Revlon to offer our customers the iconic products we have offered for decades while charting a clearer path for our future growth,” said in a statement Debra Perelman, CEO of the New York group.
The latter added in particular to have realized losses of 206.9 million dollars in 2021 on sales amounting to 2.079 billion dollars. Counting it all up, the Wall Street Journal estimated Revlon’s total debt at $3.8 billion.
“Revlon has an unsustainable capital structure with reported debt of more than 1.5 times annual sales, which has left the company with limited financial flexibility, including high leverage, low liquidity and impending maturities,” said Dawei Ma, an analyst at Moody’s.
Revlon later revealed that the pandemic, high inflation and supply chain disruptions are the three main causes of its bankruptcy filing.
Competition and strategy against other cosmetic brands
If this bankruptcy does not bode well for Revlon, some see it as a good opportunity for the brand to renew itself and rethink its marketing and strategy against other competing brands.
Since the mid-2010s, we have seen an exponential growth in the global cosmetics and beauty market. The global beauty industry market in 2021 was valued at $511 billion, and could reach $716.6 billion by 2025.
These very good results have been possible thanks to the numerous cosmetic brands that have flourished around the world. Faced with strong competition, these brands had to redouble their imagination in order not to lose popularity or consumer demand and, therefore, not to experience a decrease in profits.
And this is surely what Revlon will have to work on in order to recover from its bankruptcy filing. “Consumer tastes and buying habits are changing dramatically and yesterday’s iconic brands will be tomorrow’s nostalgic memories unless they significantly reorganize, become more financially flexible and align with consumer tastes and buying habits,” Kelly Hyman, founder of The Hyman Law Firm, told Crumpe media.
With the Kardashian clan and the many high-potential brands the sisters have released in recent years, as well as entrepreneurs Huda Katan (Huda Beauty), Rihanna (Fenty Beauty) and Charlotte Tilbury and their cosmetic flagships, Revlon will have to arm itself with concrete marketing to face this increased competition.
Read also > PARIS PACKAGING WEEK: THE PACKAGING EXHIBITION WILL TAKE PLACE ON JUNE 29 AND 30
Featured Photo : © Revlon[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]
Iconic U.S. cosmetics and fragrance company Revlon announced on Thursday (June 16) that it has filed for Chapter 11 bankruptcy under the U.S. bankruptcy system, allowing it to continue operations while it develops a recovery plan.
In a document filed with a New York court on the evening of 15 June, Revlon revealed that it had between one and ten billion dollars in debt and announced long-term liabilities of 3.3 billion dollars in the first quarter of 2022.
In the United States, Chapter 11 is a mechanism that allows a company that is unable to repay its debt to restructure while continuing to operate. This placement under the bankruptcy regime “will allow Revlon to offer our customers the iconic products we have offered for decades while charting a clearer path for our future growth,” said in a statement Debra Perelman, CEO of the New York group.
The latter added in particular to have realized losses of 206.9 million dollars in 2021 on sales amounting to 2.079 billion dollars. Counting it all up, the Wall Street Journal estimated Revlon’s total debt at $3.8 billion.
[…][/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Ftest2023.luxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F|”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…
Already have an account ? Please log in.
[/vc_cta][vc_column_text]Featured photo : © Revlon[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”subscriber,customer”][vc_column][vc_column_text]
Iconic U.S. cosmetics and fragrance company Revlon announced on Thursday (June 16) that it has filed for Chapter 11 bankruptcy under the U.S. bankruptcy system, allowing it to continue operations while it develops a recovery plan.
In a document filed with a New York court on the evening of 15 June, Revlon revealed that it had between one and ten billion dollars in debt and announced long-term liabilities of 3.3 billion dollars in the first quarter of 2022.
In the United States, Chapter 11 is a mechanism that allows a company that is unable to repay its debt to restructure while continuing to operate. This placement under the bankruptcy regime “will allow Revlon to offer our customers the iconic products we have offered for decades while charting a clearer path for our future growth,” said in a statement Debra Perelman, CEO of the New York group.
The latter added in particular to have realized losses of 206.9 million dollars in 2021 on sales amounting to 2.079 billion dollars. Counting it all up, the Wall Street Journal estimated Revlon’s total debt at $3.8 billion.
[…][/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Ftest2023.luxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F|”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…
Already have an account ? Please log in.
[/vc_cta][vc_column_text]Featured photo © Revlon[/vc_column_text][/vc_column][/vc_row]
