New York-based cosmetics and personal care company Revlon, Inc. REV is reportedly close to filing for bankruptcy.
Revlon is preparing to file for Chapter 11 bankruptcy protection as early as next week, according to the Wall Street Journal, citing people familiar with the matter. The predicament was precipitated by the enormous debt burden the company is left to contend with, the report said.
The company has reportedly started negotiations with its major lenders ahead of the maturing of several of its debts in the coming years. Its long-term debt stood at $3.31 billion at the end of March.
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Revlon is owned by MacAndrews & Forbes, the portfolio company of billionaire Ron Perelman. The private-equity firm bought Revlon in 1985.
The talks are ongoing and a Chapter 11 filing isn’t a given, the report said.
Consumer discretionary spending took a hit during the pandemic years, and the current fluid macroeconomic condition has only exacerbated the situation. That said, the reopening has recently given a small lift to the demand for the cosmetic products marketed by the company.
Reacting to the report of bankruptcy filing, Revlon stock slipped 7.32% to $1.90 in after-hours trading on Friday, according to Benzinga Pro.
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