Reliance Industries plans to buy bankrupt US company Revlon

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The Indian multinational Reliance Industries plans to buy Revlon Inc in the United States, a few days after the cosmetics giant filed for bankruptcy.

The report comes as Revlon filed for bankruptcy earlier this week after global supply chain disruptions drove up raw material costs and prompted suppliers to demand upfront payments.

In a filing late Wednesday, the company filed Chapter 11 proceedings to manage its debt, which it said was between $1 billion and $10 billion.

Revlon, known for its nail polish and lipstick, reported long-term liabilities of $3.3 billion in the first quarter.

“Today’s filing will allow Revlon to bring our consumers the iconic products we’ve offered for decades while providing a clearer path for our future growth,” CEO Debra Perelman said in a statement Wednesday.

In the United States, Chapter 11, known as reorganization bankruptcy, allows businesses to restructure while being protected from creditors and continuing to operate.

The company said it expects to receive $575 million in financing from its lenders if its bankruptcy is approved by a court.

Owned by billionaire investor Ronald Perelman and run by his daughter, Debra Perelman, Revlon posted a net loss of $67 million from January to March.

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The company, which lists Elizabeth Arden, Almay and Britney Spears Fragrances among its brands and operates in more than 150 countries, has suffered from the global supply chain crisis and high inflation.

Revlon has also faced increasing competition, which has hurt its revenue in recent years.

Reliance has forged its way into the fashion and personal care space in recent months by diversifying away from its core oil business. It has already established itself in the telecommunications and retail sectors.

(with agency contributions)

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