Upon its emergence from bankruptcy, the company will eliminate more than $2.7 billion in debt from its balance sheet, with approximately $1.5 billion of debt outstanding. The majority of Revlon’s equity will be owned by its former lenders.
His daughter Debra Perelman, who will remain as Revlon’s president and chief executive officer, called the plan “a critical milestone.” “We know this financial restructuring has been challenging for our employees, vendors and partners, and we thank them all for their support,” she said in a statement. “Our new capital structure and increased liquidity will enable us to continue to animate our brands in the market, and we look forward to the future of Revlon.”
Prior to filing for Chapter 11 bankruptcy, Revlon had been struggling with a hefty pile of debt — about $3.7 billion — that it spent much of 2020 renegotiating, which enabled it to avoid a more formal restructuring process back then. But supply chain issues, soaring inflation and increased competition from the likes of The Estée Lauder Cos., Coty Inc. and a plethora of digital start-ups only exacerbated the situation.