It is believed that Mukesh Ambani is planning to bid for Revlon after it filed for Chapter 11 bankruptcy protection in the United States, ET now citing sources reported recently
On the heels of cosmetics giant Revlon filing for bankruptcy in the US, reports have emanated that Reliance Industries could buy out Revlon Inc in the United States. It is believed that Mukesh Ambani is planning to bid for Revlon after it filed for Chapter 11 bankruptcy protection in the United States, ET now citing sources reported recently.
It may be pointed out that Revlon has been a mainstay for households around the United States since it was founded 90 years ago in New York City, overseeing a portfolio of well-known names, from Almay to Elizabeth Arden. However, Revlon is believed to have failed to keep pace with changing tastes. The company lost market share to not only rivals like Procter & Gamble but also newcomer cosmetic lines from Kylie Jenner and other celebrities. Along with rising debt, Revlon’s problems became acute with the pandemic when lipsticks moved out and medical grade masks made their way as a new fashio9n statement.
Sales dropped 21% in 2020, the first year of the pandemic, though they rebounded 9.2% in the company’s most recent reporting year with vaccines widespread. In the latest quarter that ended in March, Revlon’s sales rose nearly 8%, but remain behind pre-pandemic levels in excess of $2.4 billion a year.
Revlon barely escaped bankruptcy in late 2020 after it asked bondholders to extend its maturing debt. There could be more corporate restructurings in the consumer products sector with the threat of a recession and the rising costs of borrowing money. ET Now reported that Revlon had said that upon court approval, it expected to receive $575 million in financing from its existing lenders, which will allow it to keep its day-to-day operations running. “The 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, who was named Revlon President and CEO in 2018.
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