Revlon Wins Court Approval to Restructure and Exit Bankruptcy
A U.S. court has approved a plan that allows Revlon Inc to reorganize and cut about $2.7 billion in debt, paving the way for the cosmetics maker to emerge from bankruptcy by the end of April. This development was reported by Business of Fashion (BoF).
Judge David Jones described the plan as a complex, hard-won settlement among multiple parties. He noted that it resolves several business-threatening risks and ends a period of intense creditor litigation that threatened further instability for the company.
Under the plan, Revlon’s creditors would take ownership of the company in return for the debt relief. The agreement effectively cancels the current stock value and positions the business to raise capital after emerging from bankruptcy by selling new shares, with a goal of about $670 million in new funding.
The restructuring has the backing of a large majority of creditors, with 88% of the 4,500 creditors voting in favor of the plan. This broad support is cited as a key factor in moving forward and stabilizing the company.
Revlon says the plan will provide the company with a fresh start and establish a solid base for future growth, including potential investments in product lines and distribution channels. The company began bankruptcy proceedings in June after reporting a high debt load and cash pressures linked to pandemic-related disruptions that reduced operating cash flow and strained supplier payments.
In related news, L’Oréal has acquired the Australian luxury beauty brand Aesop for $2.5 billion, a move that signals ongoing consolidation and strategic acquisitions within the global beauty sector. This deal was reported by industry press sources and reflects broader market dynamics shaping the cosmetics landscape.
Overall, the Revlon restructuring marks a pivotal moment for the company as it transitions from debt-heavy challenges toward a potential period of renewed investment and operational focus. Industry observers suggest the move could influence creditor dynamics and equity valuation in the near term, while raising questions about how brand portfolios will evolve in a post-bankruptcy environment. Publications following the case emphasize the careful balance between debt relief, equity restructuring, and ongoing supplier relationships as the company positions itself for long-term viability.