Cosmetics company Revlon has announced it has filed for voluntary petitions for reorganisation in the US Bankruptcy Court in New York, alongside a number of its subsidiaries.
According to the firm, the Chapter 11 filing will allow it to strategically reorganise its legacy capital structure, with the goal of improving its long-term outlook.
The filing, which includes Revlon’s Canadian and UK subsidiaries, comes amid liquidity constraints caused by ongoing supply chain disruptions, rising inflation and obligations to its lenders, as well as other global challenges.
“Today’s filing will allow Revoln to offer our customers the iconic products we have delivered for decades, while providing a clearer path for our future growth,” said Debra Perelman, Revlon’s president and CEO, in a release.
Perelman added that despite consumer demand remaining strong, the company's challenging capital structure has made it difficult to “navigate macro-economic issues in order to meet this demand”.
If the court approves, the company said it is expecting to receive 575 million dollars in debtor-in-possession (DIP) financing from its existing lender base to support its day-to-day operations.
Revlon’s management team will continue to run the business following the filing, as it intends to pay vendors and partners under customary terms as well as employees in the usual manner.