Revlon, an American cosmetics company soon to file for bankruptcy. The company is recorded to have a debt of more than $3 billion.
According to reports, the cosmetics giant is soon expected to file for bankruptcy. As of March 2022, the company has a long-term debt of $3.31 billion. The company had seen a decline before the pandemic. The expected reasons for its decline are tough social media competition, supply chain barriers, and huge debts. On Friday, in the US stock market, the company hit a new low. The company’s share dropped by 53 percent and closed at $2.05.Â
Revlon is preparing to file for chapter 11 bankruptcy, next week. The decision has not been passed officially yet. Wall Street Journal cited this with the concerned people. Reorg Research first reported the bankruptcy. The annual interest expenses of the company were recorded at around $248 million and liquidity at nearly $132 million.Â
Negotiations with creditors were attempted in March 2022, but the company did not succeed. Apart from the huge debts, the company had seen a decline in operations before the pandemic. The make-up and cosmetics industry was affected during the pandemic but emerged quickly. High demand for make-up products was observed but Revlon did not experience it. The reason could also be their disrupted supply chain.Â
About Revlon
The American cosmetics company was founded in 1932 by 3 partners; Joseph Revson, Charles Revson, and Charles Lachman. It started as a nail polish brand and is now serving products across make-up and skincare. Currently, the company is owned by Ron Perelman’s MacAndrews & Forbes. The company’s products are sold in 150 countries around the world. It was one of the first companies to launch make-up products with skincare benefits. The company has more than 15 brands under them that serve skin care, hair care, perfume, etc.
The company was listed on The New York Stock Exchange, in 1996. The public IPO price was recorded at $24 per share. The company had received a great response. It was a success for the company. The company acquired many cosmetic companies, including a fragrance company, a shoe polish company, and an electric shaver company. With its varied products, it entered many foreign markets. It was recorded as a success in many countries but overall the sales saw a gradual decline. Even before the pandemic, the company was experiencing losses, and during the post-pandemic, it could not cope.Â
Social Media
The company has been recognized for its iconic advertising campaigns throughout the ’90s but with the emerging advertising patterns, it has a bad performance. The company experienced a tough social media competition with new brands having unique strategies. The major competitor for them was Estee Lauder Cosmetics. Despite this, the company launched various social media campaigns but could not capture the audience’s attention. Their recent campaign with Real was started with a great cause promoting mental wellness but could not hit the chord with the audience.Â
https://twitter.com/revlon/status/1534952910416650242?s=20&t=GgIBqlKGZTSSiZca_qIfDw
The company is one of the oldest and most prominent in the market. It has proved to be a tough competition throughout these years. It has left a mark in history, with its iconic campaigns supporting various social causes.
The company’s performance has been a concern for the board as well as investors in the market. Besides its various efforts and initiatives, the company still struggles in the market. There have only been discussions about filing bankruptcy and nothing is stated by officials yet. The final decision is expected to be taken by the next week.
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