Revlon
American cosmetic major likely to file for bankruptcy: Report
New York: American cosmetic and skin care products firm Revlon is likely to file for bankruptcy, media reports said.
The company is likely to file for chapter 11 protection, the filing for bankruptcy as per the American law, as soon as next week due to huge debt, stiff competition in the cosmetics business, inflation and the supply chain pressures, the Wall Street Journal reported quoting people familiar with the matter.
Revlon is owned by billionaire Ron Perelman's MacAndrews & Forbes has already started discussions with the lenders ahead of the next year's debt maturity.
The bankruptcy filing will end Perelman's control in the company, which his private equity firm bought in 1985.
Glendon Capital Management LP and King Street Capital Management are restructuring discussions with Revlon to clear $1.7 billion in debt, the WSJ reported last week.
Revlon has been facing stiff competition from digital native upstart brands and has been unable to overcome supply chain constraints that have been hurting its ability to service demand.
According to news agency Reuters, Revlon had long-term debt of $3.31 billion as of March.
Meanwhile, according to the news agency, Revlon's shares have nosedived 46 percent after the news of the cosmetics giant preparing to file for bankruptcy emerged.
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