06.13.22
Revlon is considering bankruptcy. According to sources, the beleagured beauty company could file Chapter 11 bankruptcy sometime this week.
The rumors sent Revlon’s stock tumbling 53% on Friday. It marked its biggest daily drop ever, closing at $2.05. In premarket trading, the stock was down 12.2% to $1.80.
Revlon's problems are many. The company's brands such as Almay, Elizabeth Arden and, of course, Revlon, have failed to find footing with younger consumers and were slow to enter the digital arena. Revlon has a huge, $3 billion pile of long-term debt. Most recently, supply chain issues have rocked results.
In May, CEO Debra Perelman noted, "While the supply chain challenges continue to have an impact, our first-quarter results were strong on both the top and bottom line. Each of our reporting segments grew over the prior year, and we experienced our best Q1 adjusted EBITDA in six years.”
Maybe, but her dad, Chairman Ron Perelman, has been selling off assets for three years in an effort to stanch the flow of red ink from his MacAndrews & Forbes empire.
The rumors sent Revlon’s stock tumbling 53% on Friday. It marked its biggest daily drop ever, closing at $2.05. In premarket trading, the stock was down 12.2% to $1.80.
Revlon's problems are many. The company's brands such as Almay, Elizabeth Arden and, of course, Revlon, have failed to find footing with younger consumers and were slow to enter the digital arena. Revlon has a huge, $3 billion pile of long-term debt. Most recently, supply chain issues have rocked results.
In May, CEO Debra Perelman noted, "While the supply chain challenges continue to have an impact, our first-quarter results were strong on both the top and bottom line. Each of our reporting segments grew over the prior year, and we experienced our best Q1 adjusted EBITDA in six years.”
Maybe, but her dad, Chairman Ron Perelman, has been selling off assets for three years in an effort to stanch the flow of red ink from his MacAndrews & Forbes empire.