Image source, Getty Photography
Cosmetics maker Revlon has filed for financial catastrophe within the US, as it says provide chain disruptions web pushed up the price of raw materials for its merchandise.
The 90-year-used firm says it has additionally been combating dealer payments, inflation and labour shortages.
The company says it expects to fetch $575m (£466.6m) from its gift lenders to bolster day-to-day operations.
Its shares misplaced extra than 13% in Fresh York shopping and selling after the announcement.
In a court docket submitting, the corporate said that provide chain disruptions had triggered intense competitors for the factors prone in its cosmetics. It added that suppliers web additionally asked to be paid for orders upfront.
This has precipitated “shortages of obligatory factors across the corporate’s portfolio,” Revlon’s chief restructuring officer Robert Caruso said within the submitting.
“As an instance, one tube of Revlon lipstick requires 35 to 40 raw materials and ingredient parts, every of which is severe to bringing the product to market,” he added.
To boot to the Revlon stamp, the corporate additionally owns smartly-identified names equivalent to Elizabeth Arden, Almay and Cutex, and fragrances fronted by Christina Aguilera and Britney Spears.
In latest years it has confronted elevated competitors from fresh manufacturers love these backed by celebrities equivalent to Kylie Jenner’s Kylie Cosmetics and Rihanna’s Fenty Elegance.
By submitting for Chapter 11 financial catastrophe safety within the US Revlon will be in a living to proceed to operate while it’s far working out a map to repay its collectors.
Revlon’s president and chief government Debra Perelman said the financial catastrophe submitting will allow the corporate to “provide our customers the iconic merchandise now we web delivered for decades, while providing a clearer direction for our future enhance”.
Alternatively, the Fresh York Stock Replace said on Thursday that it had started the draw of eradicating the corporate’s shares from its platform.
Revlon was formed in 1932 by brothers Charles and Joseph Revson and Charles Lachman and started selling nail polish soon after. By the mid-1950s it had changed into an world stamp.
It was supplied by billionaire businessman Ronald Perelman’s MacAndrews & Forbes in 1985. Revlon now sells its merchandise in extra than 150 countries.
Earlier this year, Revlon warned that it was going thru “liquidity constraints prompted by continued world challenges, in conjunction with provide chain disruption and rising inflation”.
It had $3.3bn of long-time-frame debt on the tip of March, and reports of its impending financial catastrophe closing week precipitated a move in its allotment designate.
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