JUNE 17, 2022 — REVLON FILES FOR CHAPTER 11 BANKRUPTCY
Unsustainable debt and increasing celebrity-driven competition have taken their toll on the company, forcing it into Chapter 11 Bankruptcy.
Chapter 11 Filing
On June 15, 2022, the Company and certain of its subsidiaries , including Revlon Consumer Products Corporation filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York
The Debtors will continue to operate their businesses as “debtors-in-possession” under the jurisdiction of the Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Court. To ensure their ability to continue operating in the ordinary course of business, the Debtors have filed with the Court motions seeking a variety of “first-day” relief, including the authority to obtain debtor-in-possession financing, pay employee wages and benefits, and pay vendors and suppliers in the ordinary course for all goods and services provided after the Petition Date. In connection with the Bankruptcy Petitions, the Debtors expect to seek approval from the Court to enter into (i) a super-priority senior secured debtor-in-possession asset-based loan facility in the maximum aggregate principal amount of $400 million, with certain financial institutions.
This is a red flag for employees as extreme cost-cutting will be necessary.
MARCH 19, 2020 — Original post…
New York City, New York-based Revlon, a multinational cosmetics, skincare, fragrance, and personal care company, has implemented a major restructuring program that will see hundreds of employees laid off as the company attempts to capture the positive attention of Wall Street in response to falling share prices. The company has hired Goldman Sachs to explore debt restructuring, potential sale, divestments, acquisitions, and repositioning of its brand portfolio.
According to a company spokesperson…
“Revlon, Inc. announced two important steps forward in strengthening the Company’s business, capital structure, and foundation for future growth. First, the Company executed an agreement with Jefferies Finance LLC that will significantly enhance the Company’s capital structure by refinancing the Company’s Senior Notes due February 2021 and 2019 Term Loan, extending the Company’s near-term maturities and deliver new funding for the business.
Second, the Company announced a new Revlon 2020 Restructuring Program that is expected to generate significant annualized cost reductions of between $200 and $230 million by the end of 2022. The goal of the 2020 Program is to build a stronger global business operation, enhance the Company’s cost efficiency, and improve operating margin to continue accelerating the growth in operating income and profitability that the Company saw in 2019.
The new Revlon 2020 Restructuring Program is expected to deliver in the range of approximately $200 million to $230 million of annualized cost reductions by the end of 2022, with approximately 60% of these cost reductions to be realized from headcount reductions occurring in 2020.
The Revlon 2020 Restructuring Program includes rightsizing the organization and operating with more efficient workflows and processes that the Company implemented during the 2018 Optimization Program, such as streamlining support functions and distribution activities. The leaner organizational structure is also expected to improve communication flow and cross-functional collaboration, leveraging more efficient business processes.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?