Revlon (REV) files for bankruptcy, rising debts drown cosmetics giant

Follow us on Google News:
 Revlon (REV) files for bankruptcy, rising debts drown cosmetics giant
Image source: © David68967 |
  • US cosmetics giant Revlon Inc. (NYSE: REV) files for bankruptcy.
  • Revlon failed to withstand competition from celebrity-backed cosmetic startups.
  • Founded in the early 20th century, Revlon is considered a doyen in the cosmetics industry.

US cosmetics company Revlon Inc. (NYSE: REV) has filed for bankruptcy after debts kept piling up due to its efforts to take on the rising online-focused upstarts.

Revlon has been in the reckoning of cosmetic items like nail polishes and lipsticks for the last 90 years. Founded on March 1, 1932, Revlon has its headquarters in New York City.

The company, in a court filing on Wednesday, listed assets and liabilities amounting to between US$1 billion and US$10 billion.

Founded by brothers Charles and Joseph Revson and Charles Lachman, Revlon couldn’t match the fierce competition in sales and shelf space from startups backed by celebrities like Rihanna’s Fenty Beauty and Kylie Jenner's Kylie Cosmetics.

Another issue that crippled the cosmetic giant was supply chain disruption that exacerbated during the pandemic. Shortages in product supply also pushed the company to go belly up, which is now difficult to get resolved in the short term.

Also Read: EV maker Electric Last Mile Solutions files for bankruptcy

Revlon (REV) files for bankruptcy, rising debts drown cosmetics giant© Chatdesbalkans |

Also Read: Coronavirus effect: Virgin Atlantic’s bankruptcy increases spotlight on airline stocks

Debts mounted for Revlon

As of March 31, Revlon was bogged down by long-term debt of US$3.31 billion. The company on Thursday revealed that it is expecting to receive US$575 million in debtor-in-possession financing from its existing lenders after getting the court approval.

Sales of the company also began to fall gradually over the years. In 2021, sales of Revlon plunged 22% from their 2017 levels. Revlon also came into the limelight two years ago when Citigroup Inc inadvertently transferred US900 million of its own money to Revlon’s lenders.

In 2016, Revlon bought Elizabeth Arden in a US$870 million skincare bet to deal with competition.

Revlon was bought by MacAndrews & Forbes in 1985 and went public 11 years later.

The company stated that barring Canada and the UK, none of its international units are included in the Chapter 11 bankruptcy proceedings.

Bottom line:

A firm (or an individual) files for bankruptcy when it has not been able to pay its debts. The process starts with a petition filed by the debtor. The assets of the debtor are then analyzed to repay the debt.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.

Featured Articles