Cosmetics giant Revlon files for bankruptcy as sales plummet, debts increase
New York: Revlon Inc has filed for bankruptcy after the US cosmetics firm buckled under debts it built up in efforts to compete with online-focused upstarts. Revlon Cosmetics is known for its nail polishes and lipsticks. However, Wednesday the 90-year-old company listed assets and liabilities of between $1 billion and $10 billion in a court filing. Revlon was formed in 1932 by brothers Charles and Joseph Revson and Charles Lachman. The company in recent years has lost shelf space and sales to startups backed by celebrities such as Kylie Jenner’s ‘Kylie Cosmetics’ and Rihanna’s ‘Fenty Beauty’. “The brands in Revlon’s portfolio are themselves a little older and do not offer the hype that the contemporary customer is looking for,” Thomai Serdari, a professor of marketing at New York University, said. The company has also been hit by supply issues, made worse by the Covid-19 pandemic. Resulting product shortages were another major factor in tipping Revlon into bankruptcy. Analysts have said they were unlikely to be resolved in the near-term.
Cosmetics giant Revlon files for bankruptcy as sales plummet, debts increase
New York: Revlon Inc has filed for bankruptcy after the US cosmetics firm buckled under debts it built up in efforts to compete with online-focused upstarts. Revlon Cosmetics is known for its nail polishes and lipsticks. However, Wednesday the 90-year-old company listed assets and liabilities of between $1 billion and $10 billion in a court filing. Revlon was formed in 1932 by brothers Charles and Joseph Revson and Charles Lachman. The company in recent years has lost shelf space and sales to startups backed by celebrities such as Kylie Jenner’s ‘Kylie Cosmetics’ and Rihanna’s ‘Fenty Beauty’. “The brands in Revlon’s portfolio are themselves a little older and do not offer the hype that the contemporary customer is looking for,” Thomai Serdari, a professor of marketing at New York University, said. The company has also been hit by supply issues, made worse by the Covid-19 pandemic. Resulting product shortages were another major factor in tipping Revlon into bankruptcy. Analysts have said they were unlikely to be resolved in the near-term.