June 17 (UPI) — Cosmetic leader Revlon Inc. announced on Thursday it has filed for Chapter 11 bankruptcy under the headwinds of a heavy debt load, supply chain disruptions and inflation.
The company said the filing will allow it to strategically reorganize its legacy capital structure, meet obligations to lenders and improve its long-term outlook.
Revlon said it expects to receive $575 million in debtor-in-possession financing from its existing lender base, which in addition to its existing working capital will allow it to support day-to-day operations.
“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,” Debra Perelman, Revlon’s president and CEO, said in a statement.
“Consumer demand for our products remains strong — people love our brands, and we continue to have a healthy market position.
Perelman said its “challenging capital structure” has kept Revlon from overcoming current economic issues to meet current business demands.
“By addressing these complex legacy debt constraints, we expect to be able to simplify our capital structure and significantly reduce our debt, enabling us to unlock the full potential of our globally recognized brands,” Perelman said.
“We are committed to ensuring the reorganization is as seamless as possible for our key stakeholders, including our employees, customers and vendors, and we appreciate their support during this process.”
Revlon said it plans to continue to “operate seamlessly” through the reorganizing process. It said it plans to pay vendors and partners under customary terms for goods and services received on or after the filing date.
The cosmetic giant said it will pay its employees in the usual manner and to continue their primary benefits without disruption over that time.