US cosmetics giant Revlon has filed for bankruptcy after years of fierce competition from rivals targeting online sales and supply chain issues.
In a court filed late Wednesday, the company filed a Chapter 11 lawsuit to manage its debt, which it says has been between $1 billion and $10 billion.
Revlon, known for its signature nail polish and lipstick, reported long-term debt of $3.3 billion in the first quarter.
“Today’s filing enables Revlon to offer our consumers the iconic products we’ve supplied for decades while providing a clearer path for our future growth,” CEO Debra Perelman said in a statement.
In the United States, Chapter 11, known as restructuring bankruptcy, allows companies to restructure themselves while being protected from creditors and continuing to operate.
The company said it expects $575 million in funding from its lenders if the bankruptcy is approved by the court.
Revlon is owned by billionaire investor Ronald Perelman and run by his daughter, Debra Perelman, and reported a net loss of $67 million from January to March.
The company, which lists Elizabeth Arden, Almay and Britney Spears Fragrances under its brands and operates in more than 150 countries, has suffered from the global supply chain crisis and high inflation.
Revlon has also faced increasingly stiff competition, which has hurt sales in recent years.
The company was embroiled in controversy in August 2020 when Citibank revealed that it had accidentally transferred $900 million dollars to several of Revlon’s creditors.
The bank then filed a complaint against an investment fund that refused to pay out part of the amount, but the complaint was dismissed in court.
(This story was not edited by NDTV staff and was generated automatically from a syndicated feed.)