Revlon Has Supply Chain Bankruptcy
June 28, 2022
filed voluntary petitions for reorganization under Chapter 11 in the
U.S. Bankruptcy Court for the Southern District of New York.
The Chapter 11 filing will allow Revlon to strategically reorganize its
legacy capital structure and improve its long-term outlook, especially
amid liquidity constraints brought on by continued global challenges,
including supply chain disruption and rising inflation, as well as
obligations to its lenders.
Upon receipt of court approval, the Company expects to receive $575
million in debtor-in-possession (“DIP”) financing from its existing
lender base, which in addition to its existing working capital facility,
will provide liquidity to support day-to-day operations.1 The strong
support by the Company’s lenders will help the business manage through
current macro-economic challenges and in turn enable it to better serve
“Today’s filing will allow Revlon to offer our consumers the iconic
products we have delivered for decades, while providing a clearer path
for our future growth,” said Debra Perelman, Revlon's President and
Chief Executive Officer. “Consumer demand for our products remains
strong – people love our brands, and we continue to have a healthy
market position. 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
recognized brands. We are committed to ensuring the reorganization is as
seamless as possible for our key stakeholders, including our employees,
customers and vendors, and we appreciate their support during this
of Revlon’s international operating subsidiaries are included in today’s
U.S. Chapter 11 proceedings, except Canada and the U.K.
Revlon to Continue to Operate Seamlessly
Revlon’s management team will continue to run the business following the
filing. As part of the reorganization process, the Company will file
customary "First Day" motions to allow it to maintain operations in the
ordinary course. Revlon intends to pay vendors and partners under
customary terms for goods and services received on or after the filing
date and to pay its employees in the usual manner and to continue their
primary benefits without disruption. The Company expects to receive
court approval for all of these routine requests.