Cosmetics giant Revlon filed for Chapter 11 bankruptcy halfway through June 2022. The filing came at the end of a tough few years for the company, which had already been combating declining sales when the pandemic arose. Covid-induced supply chain disruption proved to further compound the issue, making it more difficult for the company to manage its debt load. In addition to macro pressures, Revlon had also been finding it increasingly difficult to capture younger consumers amid the growing popularity of beauty startups like Glossier.
The company had previously tried to prevent bankruptcy by taking on Citigroup as its loan agent. However, while the bank originally intended to send $8M in interest payments to Revlon’s lenders, it accidentally wired $900M. At the time Revlon filed for bankruptcy, more than half of that sum had still not been returned.
While the company set up a restructuring committee, its plans to reorganize have not moved forward and could be challenged by ongoing litigation stemming from the 2020 Citi fiasco.
