Revlon Emerges From Chapter Next Lender Takeover
Revlon Inc mentioned on Tuesday that it has emerged from financial ruin then reducing greater than $2.7 billion in debt and handing regulate of the wonder merchandise corporate to its lenders.
Eminent government officer Debra Perelman mentioned in a observation that Revlon is more potent then financial ruin and smartly situated for long-term expansion.
“We look forward to unlocking the full potential of our globally recognised brands and continuing to offer our customers the iconic products they have loved for decades,” Perelman mentioned.
Revlon, which has a 91-year historical past promoting lipstick, nail polish and alternative attractiveness merchandise, filed for financial ruin in June, pronouncing its $3.5 billion debt load and pandemic-related disruptions had left it too cash-poor to build well timed bills to essential distributors in its cosmetics provide chain.
Revlon has stuffed its post-bankruptcy board of administrators with skilled executives from the patron, retail, and attractiveness industries, together with former Bloomin’ Manufacturers CEO Elizabeth Smith and previous Sephora CEO Martin Brok.
Revlon’s lenders took possession of the corporate in trade for the debt relief word, wiping out the fairness price of current shareholders.
The corporate’s greatest shareholder used to be MacAndrews & Forbes, which is owned by way of Perelman’s father Ron Perelman. MacAndrew & Forbes held 85 % of the corporate’s stocks on the week of its financial ruin submitting, and the residue reserve noticed a surge in passion from retail buyers latter yr prior to collapsing in price.
Revlon’s fresh homeowners come with Glendon Capital Control, King Side road Capital Control, Angelo Gordon & Co, and Oak Hill Advisors.
King Side road Capital Managing Director Noah Charney mentioned the fresh homeowners had been proud to “serve as stewards” of a “storied American business.”
The corporate, which has modified its company identify to Revlon Workforce Holdings, mentioned it exited from financial ruin with $1.5 billion in debt and $236 million in to be had liquidity. It in the past introduced plans to lift $670 million by way of promoting fresh fairness stocks then its financial ruin.
Revlon reported $490 million in web gross sales for the primary quarter, up yr on yr from $479.6 million.
By way of Dietrich Knauth and Nandhini Srinivasan; Scribbler Marguerita Choy
Be informed extra:
Revlon Cleared to Exit Bankruptcy With $2.7 Billion on Debt Reduction Deal
Next submitting for financial ruin in June 2022, the beauty corporate can now short its debt.