Cosmetics Maker Revlon Nears Bankruptcy Filing

The Wall Street Journal (WSJ) reported on Friday (Saturday, June 11, 2022, in Manila) that cosmetics maker Revlon Inc. is preparing to file for Chapter 11 protection as soon as next week, citing people familiar with the matter.

Photo Insert: Although demand for makeup has increased as coronavirus restrictions are eased, Revlon has been facing stiff competition from digital-native upstart brands.

Revlon's shares fell 46 percent and the company did not immediately respond to requests for comment.

According to the WSJ, the lipstick maker has begun talks with lenders ahead of looming debt maturities in an attempt to keep the company from going bankrupt. As of the end of March, Revlon had $3.31 billion in long-term debt.

Demand for makeup products has increased in recent months as people around the world go out more frequently.

However, Revlon, which is facing stiff competition from digital-native upstart brands, stated in March that supply chain constraints were hampering its ability to meet demand. Revlon's bankruptcy filing was first reported by Reorg Research.

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