Revlon, Inc. formally filed for chapter on June 16. The information comes simply days after rumors of the brand’s financial situation started to unfold. The drugstore-cosmetics firm, which was based in New York City in 1932, is reported to have roughly $3.7 billion in money owed, in keeping with Bloomberg. The publication additionally reported that court docket papers put the corporate’s listed belongings at $2.3 billion as of April.
What does this imply for the affordable beauty brand? It’s difficult, however relaxation assured: Revlon will not be going away for good. The class of chapter that it filed for is Chapter 11, which permits the corporate to proceed to function. Chapter 11 chapter is also called “reorganization” chapter, permitting a enterprise to try to make a comeback.
“Usually, the debtor stays ‘in possession,’ has the powers and duties of a trustee, might proceed to function its enterprise, and will, with court docket approval, borrow new cash,” the Administrative Office of the US Courts said on behalf of the Federal Judiciary.
This means you may most probably proceed to see Revlon merchandise on retailer cabinets as the corporate works to create a plan to get out of debt. Reuters reported that Revlon’s sales fell 22 % in 2021 from 2017 numbers, nevertheless it expects “to get $575 million in debtor-in-possession financing from its present lender base upon receipt of court docket approval.”
At the time of publishing, POPSUGAR has reached out to Revlon for touch upon what the model’s subsequent steps are however has but to listen to again.