Cosmetics powerhouse Revlon announced it has filed for Chapter 11 protection in the United States, citing liquidity pressures driven by inflation, ongoing supply chain bottlenecks, and creditor liabilities. The move signals a strategic step to reorganize finances while continuing its operations across markets where the brand has a strong footprint.
In a statement released the following morning, Revlon confirmed the voluntary filing in the Southern District of New York. The chapter 11 action places the company under court supervision as it works toward a stronger capital structure and long-term stability for its brands, suppliers, and workforce.
According to a CNBC report, Revlon carried long-term debt of about 3.31 billion dollars as of March 31, with a market capitalization near 123 million dollars at the close of the prior trading session. The move prompted a pause in trading ahead of the market open as investors absorbed the bankruptcy decision.
Bankruptcy protection will enable Revlon to reorganize its obligations while continuing everyday business activities. The aim is to stabilise the company’s financial foundation and protect the value of its brands during the restructuring. Management indicated that ongoing operations will be supported by a combination of debtor-in-possession financing and existing creditor support to ensure uninterrupted manufacturing, distribution, and customer service.
If the court approves the proposed debtor-in-possession financing package, Revlon expects access to up to 575 million dollars to fund operations during the restructuring period. Management stressed that the financing is intended to ease the transition and preserve the company’s ability to meet obligations to customers, vendors, and employees while negotiations with creditors continue toward a viable capital structure after Chapter 11.
The leadership underscored a careful and orderly restructuring process designed to minimise disruption for shareholders and workers. This includes open communication with stakeholders and a focus on maintaining brand equity across its portfolio, which includes Elizabeth Arden, Mitchum, and Cutex, among others. The organization also maintains brand extensions tied to celebrity collaborations and licensed lines, underscoring its ongoing role in the cosmetics industry.
Revlon, established in 1932, remains a major global player in cosmetics with a diversified footprint across North America, Europe, Asia, and beyond. The company operates in numerous countries and employs thousands, supporting a broad network of suppliers, retailers, and service partners. Its product lines span hair care, skincare, fragrance, and nail items, with a history of iconic products and collaborations that have solidified its position in the beauty landscape.
As the restructuring unfolds, industry observers will watch how Revlon navigates liquidity pressures, debt obligations, and competitive dynamics in the consumer goods sector. The outcome will hinge on access to financing, the effectiveness of the capital plan, and the ability to preserve brand momentum during a period of market volatility. Stakeholders hope for a clear plan that protects jobs, maintains supply chains, and positions Revlon for a more resilient future.
For the broader cosmetics industry, Revlon’s restructuring underscores how consumer-focused companies can be affected by macroeconomic shifts, inflation, and global trade tensions. The company’s broad portfolio and international reach highlight the challenges of sustaining a profitable operation in an increasingly connected market. Observers will likely track milestones, financing agreements, creditor settlements, and governance changes as the process advances.