Posted on 06/16/2022 5:34:56 AM PDT by Red Badger
Cosmetics maker Revlon has filed for Chapter 11 bankruptcy protection, succumbing to a rising debt load, online competition and supply chain woes.
Why it matters: While corporate bankruptcies remain at some of their lowest levels since 2010, the lipstick and nail polish maker could foreshadow more upheaval in the consumer discretionary sector as the U.S. braces for a possible recession.
Details: The company plans to receive $575 million in debtor-in-possession financing from its existing lenders, which will allow it to continue operating.
Revlon said its estimated liabilities were between $1 billion and $10 billion, according to a court filing. What they're saying: "By addressing these complex legacy debt constraints, we expect to be able to simplify our capital structure and significantly reduce our debt, enabling us to unlock the full potential of our globally recognized brands," Revlon CEO Debra Perelman said in a statement.
Revlon makes NOTHING you can’t get cheaper somewhere else!
Zoolander and I have one similar trait: I can’t make a left turn...Neither can Derek...
For 2 years I skipped the lipstick because of the idiot mask mandates EVERYWHERE!! Now there are huge problems with petroleum products for them!! God I HATE Joe Biden
Revlon is going under?
How TF did that happen? They sell makeup. Nothing is more recessionproof than female vanity.
Women increasingly don’t wear make-up
They just don’t have time for it
Bad leadership, usually..................
This is surprising since all the queers wear makeup now.
I love their lipstick always have.
Dang it, just when I invested everything in them!
It’s a loan(s) along with post-petition payments approved by the bankruptcy court, in return for which the lender takes a super-priority and moves ahead of all other creditors. In other words, in case things don’t work out, the super-priority lender gets paid first from what’s left.
Thanks for the explanation. This truly is a cash infusion to get them through their re-organization.
My boss was complaining from time-to-time about a customer to his company that went Chapter 11 while owing our company a chunk of change. Revlon’s situation sounds a lot like that one. BTW, our company got pennies-on-the-dollar for past orders...
The pervert market is just not that big.
Many companies are going to have to learn that the hard way.
“The pervert market is just not that big.”
I know, I was just being sarcastic in that every company thinks homos will be profitable.
That was my first thought. We should try that with the IRS or a mortgage company. “I made between $6K and 100K last year.”
Men who believe they are women balance that out.
In Chapter 11 proceedings Revlon announced that they would attempt to save money by combining the positions of spokesperson, Charitable Giving Director and Chief Financial Officer into one position, the position of Fiscal Responsibility Officer, and that they have hired Amber Heard for the position.?
That works!....apparently she can piss money away like nobody’s business......at least that’s what a pirate told me. 😏
In November 2020 the company came close to filing for bankruptcy. Ron Perelman, a private investor, did a deal with corporate raider Carl Icahn to restructure its debt.
This is another example of modern private equity investors and corporate raiders milking a company through a series of financial restructurings, downsizings, and transfers of assets to other entities. Frequently the company is loaded with excessive debt while cash and assets are drained away. Over time the company loses sales and customers as the product quality declines and customer service suffers. Add adverse economic conditions, and these highly leveraged companies are no longer able to survive.
I am betting that their accounting dept was one reason they are bankrupt. How can you have that kind of spread?
FTA: Revlon said its estimated liabilities were between $1 billion and $10 billion
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