Revlon has been the biggest name around in the 20th century. The company now faces at least $14 million in debt with the protection helping them distribute their products.
Cosmetics giant now in financial troubles
Right now, Revlon is having a tough time keeping up with the new cosmetic businesses which often rely on social media influencers or media personalities to promote their products.
Like many companies, the pandemic took a huge toll on Revlon as companies could not operate in the same way they used to. To date, the company found it quite hard to keep up with the new ways of doing things, particularly promotion.
Some new competitors like Kylie Jenner Cosmetics have taken the internet by storm which led to the mother of two getting a billionaire status.
According to News.com, as Revlon filed for bankruptcy protection, the company will still be able to stay afloat and continue with their day to day operations.
Revlon struggles with supply chain issues and inflation
Thus far, the franchise in the US is in much trouble, but the branch in Australia is currently safe. According to a spokesperson for Revlon, much of the money will go into keeping the Australia branch afloat.
To date, if the bankruptcy is approved in court, the company can expect at least $575 million in funding from its creditors and investors.
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So far, Revlon is estimated to have lost around $67 million from January to March. Unfortunately, the company has struggled with supply chain issues as well as high inflation.
Currently, Revlon would have been running for at least 90 years. In the company’s heyday, they were one of the top cosmetic companies in the world trailing behind Avon at second.