Revlon rescues itself from bankruptcy after year-long battle

Revlon has emerged from bankruptcy following a financial restructuring process, as announced by the brand earlier this week.

The cosmetics brand cut more than $2.7 billion in debt and handed control of the beauty products company to its lenders. Revlon's CEO, Debra Perelman said in a statement that Revlon is stronger after bankruptcy and well positioned for long-term growth. The majority of the Company’s reorganized equity is now owned by its former lenders. The company, which has changed its corporate name to Revlon Group Holdings, said it exited from bankruptcy with $1.5 billion in debt and $236 million in available liquidity. It previously announced plans to raise $670 million by selling new equity shares after its bankruptcy.

“With a simplified capital structure, significantly reduced debt, and a new, highly experienced and committed board of directors, we look forward to unlocking the full potential of our globally recognized brands and continuing to offer our customers the iconic products they have loved for decades,” Perelman added.

Don't miss: Why bankruptcy is hardly the end for Revlon

Revlon had filed for a Chapter 11 bankruptcy in the US, which allowed the company to strategically reorganise its capital structure and improve its long-term outlook. Revlon said in a statement that the move came amidst liquidity constraints brought on by "continued global challenges", including supply chain disruption and rising inflation, as well as obligations to its lenders.

"But our challenging capital structure has limited our ability to navigate macro-economic issues in order to meet this demand. By addressing these complex legacy debt constraints, we expect to be able to simplify our capital structure and significantly reduce our debt, enabling us to unlock the full potential of our globally recognised brands," said Perelman.

The company’s reorganised board will be led by executive chair, Elizabeth Smith who was the former CEO and executive chair of Bloomin Brands, the restaurant company. Smith said that she is confident that this milestone is only the beginning of Revlon’s bright future.

“While honouring the company’s legacy, I look forward to working alongside the management team and my director colleagues to usher in a new era, execute against the significant opportunities ahead, and deliver enduring value to all Revlon’s stakeholders, she added.

Noah Charney, managing director at King Street Capital Management, said, "On behalf of Revlon’s new shareholder group, we are proud to serve as stewards of this storied American business and support the Company as it embarks on its path to sustainable, profitable growth.”

Content 360 is back on 10-11 May 2023 in Singapore. A hugely popular event over the years, Content 360 brings the most influential content creators to inspire you. Across two days, you can connect with 300+ brightest minds in the industry and learn how to overcome challenges to make your content stand out among the crowd. Tickets are on sale now, register today: https://conferences.marketing-interactive.com/content360-sg/

Related articles:
Citi sues Revlon. Here's why
Why bankruptcy is hardly the end for Revlon
Iconic cosmetic brand Revlon files for bankruptcy