Cosmetics brand Revlon has filed for bankruptcy, after the US company struggled to cope with mounting debts it had amassed to compete with online retailers.
Charles and Joseph Revson founded Revlon in 1932 and it has since built a portfolio of brands including Elizabeth Arden, Almay and Cutex.
The 90-year-company has also had fragrances fronted by Christina Aguilera and Britney Spears.
However, according to court filings in the New York, Revlon has listed assets and liabilities of between $1bn and $10bn.
In recent years it has lost shelf space and sales to starts-ups backed by Kylie Jenner’s Kylie Cosmetics and Rhianna’s Fenty Beauty
Supply issues have also impacted revenue, made worse by COVID-19 and resulting in shortages that have tipped Revlon into bankruptcy.
By contrast, competitor Coty has gained market share by investing to improve the stock of products.
“Our challenging capital structure has limited our ability to navigate macro-economic issues,” said Debra Perelman, Revlon chief executive since mid-2018 and daughter of Ron Perelman, who owns its controlling shareholder MacAndrews & Forbes.
The cosmetics brand started off by selling enamel and was sold to MacAndrews & Forbes in 1985, listing 11 years later.
It bought Elizabeth Arden for $870m in 2016, while also taking on brands such as Britney Spears Fragrances and Christina Aguilera Fragrances.
The company’s sales have lagged in recent years and in 2021 fell 22% from its 2017 levels.
It also hit the headlines in 2020, when Citigroup accidentally sent nearly $900m of its own money to Revlon lenders.
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Revlon has had long-term debt of $3.31bn as of 31 March and said on Thursday it expected to get $575m in debtor-in-possession financing from its existing lender base upon receipt of court approval.
Shares in Revlon have halved since reports said it was nearing a bankruptcy filing.
Revlon narrowly avoided bankruptcy in 2021 following a stand-off between its owners and lender Carl Icahn.
