Revlon files for Chapter 11 bankruptcy protection
Cosmetics maker Revlon has filed for Chapter 11 bankruptcy protection, succumbing to a rising debt load, online competition and supply chain woes.
Why it matters: While corporate bankruptcies remain at some of their lowest levels since 2010, the lipstick and nail polish maker could foreshadow more upheaval in the consumer discretionary sector as the U.S. braces for a possible recession.
Details: The company plans to receive $575 million in debtor-in-possession financing from its existing lenders, which will allow it to continue operating.
- Revlon said its estimated liabilities were between $1 billion and $10 billion, according to a court filing.
What they're saying: "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 recognized brands," Revlon CEO Debra Perelman said in a statement.
Kimberly Chin co-authors the daily Axios Pro: Retail Deals newsletter. Subscribe here.