Cosmetics giant Revlon (REV) has filed for Chapter 11 bankruptcy protection, succumbing to a
high debt load and global supply chain problems.
In its bankruptcy filing, New York City-based Revlon said that it is currently unable to timely fill
one-third of customer orders for its products due to an inability to source a “sufficient and
regular supply of raw materials.”
Revlon added that shipping items from China to the U.S. is taking eight to 12 weeks longer than
normal and costing four times more than pre-pandemic 2019 prices.
Revlon had long-term debt of $3.31 billion U.S. at the end of March this year, a regulatory filing
shows. The nail polish and lipstick maker listed assets and liabilities between $1 billion and $10
billion, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York.
In late 2020, as stuck-at-home consumers cut back their spending on beauty products, Revlon
narrowly avoided bankruptcy when enough bondholders took part in its debt restructuring.
The company’s sales of about $1.9 billion U.S. in 2020 were down 21% from 2019 levels.
Though the business rebounded in 2021, Revlon’s revenue is still below pre-pandemic levels.
The company faces increasing competition from start-up rivals such as “Glossier,” Kylie
Jenner’s “Kylie Cosmetics” and Rihanna’s “Fenty Beauty.”
Revlon’s stock has fallen 83% year to date to trade at $1.95 U.S. per share.