Cosmetic Brand Revlon Declare Bankruptcy
Following fallout from pandemic
Cosmetic heavy weights Revlon have filed for bankruptcy after the Covid pandemic resulted in a massive drop in sales.
The makeup company was first established 90 years ago in New York City and have been responsible for the emergence of other big brands including Elizabeth Arden.
The cosmetic brand have attributed their debt to the Covid pandemic with people purchasing less lipstick as a result of compulsory face masks in public places.
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According to financial reports, Revlon sales plummeted by 21 percent in 2020 during year one of the pandemic.
Sales have since increased by 9.2 percent over the latest reporting year but have failed to make up for the company’s massive loss over year one of the pandemic.
While Covid was a contributing factor, the brand also failed to compete with emerging brands fronted by Hollywood A-Listers that have since dominated the market including Kylie Jenner cosmetics.
Revlon have also dealt with global supply chain disruptions much like a number of other international companies which they have failed to recover from seeing them almost declare bankruptcy back in 2020.
Revlon CEO Debra Perelman announced on Thursday that Revlon is likely to receive $575 million USD from current lenders which will keep the company operating.
“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,” she said.
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