Cosmetics maker Revlon has filed for Chapter 11 bankruptcy in the US, as it says supply chain disruptions have driven up the cost of raw materials for its products.
The 90-year-old firm says it has also been struggling with supplier payments, inflation and labour shortages.
The company says it expects to receive $575 million from its existing lenders to support day-to-day operations.
In a court filing, the company said that supply chain disruptions had prompted intense competition for the ingredients used in its cosmetics. It added that suppliers have also asked to be paid for orders upfront.
By filing for Chapter 11 bankruptcy protection with the help of an experienced bankruptcy attorney in the US, Revlon will be able to continue to operate while it is working out a plan to repay its creditors.
Its sales of about $1.9 billion in 2020 were down 21% from 2019 levels. Though the business rebounded in 2021, Revlon’s revenue is still below pre-pandemic levels.
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