Beauty giant Revlon has filed for Chapter 11 bankruptcy in light of mounting debt, new competitors, and continued supply chain woes.
In recent years the 90-year-old brand, once renowned for its lipsticks and nail polishes, has fallen in popularity as the rise of celebrity-backed brands such as Fenty Beauty and Kylie Cosmetics seduced their customer base. Additionally, the global supply chain issues and increasing materials costs have burdened the company tremendously.
The brand, which was finally finding its niche again after struggles to adapt to the ever-changing beauty climate, was hit with a devastating blow with the onset of the COVID-19 pandemic. Lipstick sales fell as people were forced to wear masks. Revlon sales plunged 21% in 2020 but saw a 9.2% uptick in 2022. Unfortunately, it was not enough to overcome the debt.
Revlon recruited big names to help attract sales and a younger audience. Last year, they teamed up with Megan Thee Stallion for two separate collaborations: the Big Bad Beauty Collection and the Hot Girl Sunset Makeup Collection. In 2019, supermodel Adwoa Aboah debuted her Gurls Talk collection with the cosmetic line. The company has also invested heavily in social issues, joining mental health platform Real for the “Caring For Your Mental Wellness Is Beautiful” campaign during Mental Health Awareness Month this year.
In its court filing late Wednesday, the company listed more than $3.54 billion in liabilities. Revlon CEO Debra Perelman says that this week’s filing will provide a “clearer path” for the company’s future, which has nearly collapsed under a “challenging capital structure.”
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