Competition from youthful on-line rivals and provide chain chaos power Revlon out of business
Revlon has gone bust amid rising money owed, provide chain chaos and fierce competitors from youthful rivals.
The 90-year-old cosmetics large behind Elizabeth Arden and Gatineau filed for chapter within the US yesterday.
It follows years of wrestle for the New York-based enterprise, famend for supermodel campaigns that includes numerous, well-known and new fashions together with Iman, Claudia Schiffer, Cindy Crawford and Christy Turlington. It promised to make ladies ‘unforgettable’.
Style icon: 90-year-old cosmetics large Revlon, famend for supermodel campaigns that includes the likes of Cindy Crawford (pictured), filed for chapter within the US
But it was sluggish to observe ladies giving up flashy cosmetics like purple lipstick for extra muted tones within the Nineteen Nineties.
And it has misplaced shelf area and gross sales to superstar start-ups comparable to Kylie Jenner’s Kylie Cosmetics and Rihanna’s Fenty Beauty.
Revlon’s issues intensified with the pandemic as gross sales of lipstick tumbled with prospects pressured indoors. As a outcome gross sales tumbled 21 per cent in 2020.
Revlon has additionally been hit by provide points, made worse by the pandemic, and the ensuing product shortages helped push it out of business.
The submitting was made within the US Bankruptcy Court for the Southern District of New York and the corporate listed property and liabilities between £810million and £8.1billion, in accordance with the paperwork.
Supply chain woes: Revlon’s issues intensified with the pandemic
The enterprise stated it expects to obtain £469million in financing from its lenders, which is able to maintain day-to-day operations working.
Revlon president and chief govt Debra Perelman stated the chapter submitting will ‘provide a clearer path for future growth’ whereas maintaining merchandise on the cabinets.
Perelman’s father, billionaire Ron Perelman purchased the enterprise by means of a hostile takeover within the late Eighties.
Revlon went public in 1996. His daughter landed the highest job in 2018.
Revlon’s manufacturers additionally embody Britney Spears Fragrances and Christina Aguilera Fragrances.
In 1970, Revlon turned the primary magnificence firm to function a black mannequin, Naomi Sims, in its promoting.
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