Cosmetic maker Revlon has filed a case of bankruptcy in the US. The reason as stated is that there was a disruption in the supply chain that has increased the price of raw materials for its goods.
Revlon, which is a 90-year-old firm stated that the firm is struggling with the payments of the supplier. There is inflation as well as a shortage of labor. The firm says that it looks forward to receiving $575m from its lenders who are existing for supporting their day-to-day operations.
Revlon Inc is facing pushback to its proposed $1.4 billion bankruptcy loan, with its official creditors committee opposing the loan and calling the cosmetic company’s case a “mess” in a Wednesday court filing.
After the announcement, Revlon’s shares lost more than 13% in New York trading. In a court filing, Revlon said that there is a disruption in the supply chain. And that is leading to intense competition for the element that is used in the cosmetics. The suppliers have even asked for the payment for orders in advance. This has led to the shortages of the elements that are necessary for the company’s portfolio.
