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Revlon files for bankruptcy
The renowned cosmetics brand Revlon, after years of being in the homes of many women, declared bankruptcy in the United States this Thursday, June 16. Despite these statements, it will continue in the market offering the iconic products that it previously gave to all those who wanted it in their homes.
Revlon CEO Debra Perelman commented on what was discussed on Thursday, saying:
"Today's statement will allow Revlon to offer our consumers the iconic products we've delivered for decades, while also providing us with a clearer path for our future growth."
The executives also assure that the restructuring of the debt will not be an impediment to continue operating. Revlon will access US$575 million from its financiers to continue in the market.
In addition to that, within the statements, the executives said that they had little liquidity due to the high costs of consumption and the current global situation.
With more than 2 million dollars in debt at the beginning of this year, the Revlon brand has declined not only because of this, but because of the competition in the market, before being positioned at number one. Currently, it is ranked number 22 of the brands that sell cosmetics internationally.
Revlon's downfall began in 1990, when preferences changed drastically and instead of asking for bright or strong colored lipsticks, they preferred opaque and a more subdued color. This is how this well-known brand has been declining in its sales, it did not adapt to the needs as expected.
Rihanna's Fenty Beauty or Kylie Jenner's Kylie Cosmetics are brands that have emerged on the market and are endorsed by famous personalities. They have caused an interesting lock for the Revlon brand.
In addition to this, the brand's executives have stated that the supply chain has also been delayed and therefore they have had many difficulties in accelerating production and even in the excellence of their products. In 2020, its sales fell a lot and are still below even though it has increased by 10%.
A little history
The brothers Charles and Joseph Revson together with Charles Lachman in 1932, founded Revlon and at the beginning, it was an incredible brand that also crossed racial barriers because it was the first official brand to hire a model of color : Saomi Sims.
Later, in the 1940s, the brand used the strategy of including actresses and models on the level of Iman, Cindy Crawford or Claudia Schiffer. By 1985, it was acquired by MacAndrews & Forbes, owned by billionaire Ronald Perelman.