Why did the giant cosmetics company Revlon file for bankruptcy?

Revlon cosmetics giant I filed for bankruptcy on Thursdayciting “liquidity problems” due to the global effects it produces high inflationAnd the Ongoing bottlenecks in the global supply chain and obligations to its creditors.

The company issued a statement last morning announcing that it is voluntarily filing for Chapter 11 bankruptcy court for the Southern District of New York.

According to CNBC, the company had performed on March 31 $3,310 million long-term debtIts market value reached $123 million at the close of Wall Street on Wednesday.

In the hours leading up to the opening of the stock exchange, the company paralyzed operations on its shares, which fell by 4.44% at their last price.

The bankruptcy filing will allow Revlon to continue all of its operations while it tries “Reorganizing the capital structure and improving long-term prospects.”

If the bankruptcy court approves the declaration, Revlon expects to obtain 575 million debtor-in-acquisition (“DIP”) financing, which will allow it to support its existing operations, given that, according to its holdings, it still has “strong creditor support” for the company. .

Revlon CEO Debra Perlman emphasized this in her statement The company is committed to making its restructuring “as smooth as possible To our shareholders, our employees, our customers and our sellers.”

The company was founded in 1932, and it is one of the most important companies in the field of cosmetics – especially hair cosmetics -, it is present in 150 countries, employs about 6000 people, and owns famous brands such as Elizabeth Arden, Mitchum, Kotex, as well as from some associated with personalities Like Britney Spears or Christina Aguilera.

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