Revlon today announced it and certain of its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.
The Chapter 11 filing will allow Revlon to strategically reorganize its legacy capital structure and improve its long-term outlook, especially amid liquidity constraints brought on by continued global challenges, including supply chain disruption and rising inflation, as well as obligations to its lenders.
Upon receipt of court approval, the Company expects to receive $575 million in debtor-in-possession (“DIP”) financing from its existing lender base, which in addition to its existing working capital facility, will provide liquidity to support day-to-day operations. The strong support by the Company’s lenders will help the business manage through current macro-economic challenges and in turn enable it to better serve customers.
“Today’s filing will allow Revlon to offer our consumers the iconic products we have delivered for decades, while providing a clearer path for our future growth,” said Debra Perelman, Revlon's President and Chief Executive Officer. “Consumer demand for our products remains strong – people love our brands, and we continue to have a healthy market position. But our challenging capital structure has limited our ability to navigate macro-economic issues in order to meet this demand. 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. We are committed to ensuring the reorganization is as seamless as possible for our key stakeholders, including our employees, customers and vendors, and we appreciate their support during this process.”
None of Revlon’s international operating subsidiaries are included in today’s U.S. Chapter 11 proceedings, except Canada and the U.K.
Revlon to Continue to Operate Seamlessly
Revlon’s management team will continue to run the business following the filing. As part of the reorganization process, the Company will file customary "First Day" motions to allow it to maintain operations in the ordinary course. Revlon intends to pay vendors and partners under customary terms for goods and services received on or after the filing date and to pay its employees in the usual manner and to continue their primary benefits without disruption. The Company expects to receive court approval for all of these routine requests.
Additional Information about the Restructuring Process
PJT Partners is acting as financial advisor to Revlon and Alvarez & Marsal is acting as restructuring advisor. Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal advisor to the Company.