Cosmetics giant, Revlon Inc, had filed for bankruptcy protection, weighed down by supply chain disruptions, rising inflation, and debt obligations. Its shares had plunged more than 82% since January, however, they soared 91.28% on June 17th, 2022 after Reliance Industries considered buying out the company.
Mukesh Ambani-led Indian oil-to-retail conglomerate is now mulling bidding for the cosmetics maker that has been a mainstay on store shelves since its founding 90 years ago in New York City. Revlon failed to keep pace with the changing tastes of consumers, in addition to losing market share to big rivals like Procter & Gamble, and cosmetic lines from Kylie Jenner and other celebrities. Reliance has pushed its way into the fashion and personal care space in recent months.
Revlon reported long-term liabilities of $ 3.3 billion in the first quarter. it expects to receive $575 million in financing from its lenders if its bankruptcy is approved in court. Further, it reported a net loss of $67 million from January to March.
Revlon is owned by Ronald Perelman and run by his daughter, Debra Perelman. It lists Elizabeth Arden, Almay, and Britney Spears Fragrances among its brands. It operates in over 150 countries.
Both the companies have not commented on this development. “We have made and will continue to make necessary disclosures in compliance with our obligations under Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and our agreements with the stock exchanges,” a spokesperson from Reliance said.
Written By – Simran Bafna
