The bankruptcy caps a tumultuous period for the company, which suffered during the pandemic and faced years of declining sales as consumer tastes changed and upstart brands ate into its market share. More recently, the company said supply-chain pain and inflation were challenging its ability to keep up with rebounding consumer demand.

The company has long struggled with a burdensome debt load, even dating back to when Perelman’s father Ron bought it in 1985, when he was just 42. The contested takeover led him to raise his price several times, eventually paying $US2.7 billion including debt in a deal financed by Michael Milken’s junk bond powerhouse Drexel Burnham Lambert.

While other companies, such as Marvel, went bankrupt under Ron Perelman’s ownership, he remained committed to keeping Revlon solvent, deploying clever and increasingly complex strategies to squeeze out cash from other corners of his empire to stage a rescue.

In 2003, he stepped in with a promise of cash from his holding company, MacAndrews & Forbes, to stop Revlon from defaulting as it wobbled under $US2 billion in debt. Many similar infusions took place, including from Perelman family foundations and his father.

The company’s debt load proved burdensome, especially after it sold more than $US2 billion of loans and bonds to fund its acquisition of Elizabeth Arden in 2016. It also owns brands including Cutex and Almay, and markets in more than 150 countries.

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In recent years, Revlon has struggled to compete with newer brands and those owned by rivals L’Oreal SA and Estee Lauder Cos. that have turned to video bloggers and Instagram personalities to fuel growth. The pandemic provided another blow to sales.

Bloomberg

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