According to the Daily Financial News, on June 15, local time, the American beauty brand Revlon filed for bankruptcy protection in the Southern District Court of New York. Court documents show that as of the end of April, Revlon had $2.3 billion in assets and $3.7 billion in debt, including a 6.25 percent senior debt due in 2024. In addition, the company has 10 outstanding loans totaling about $2.6 billion that will mature over the next three years.

On June 10, The Wall Street Journal first broke the news that Revlon may file for bankruptcy protection this week. On the same day, Revlon’s stock price plummeted by nearly 53%, and fell by nearly 43% on June 13. Since the beginning of the year, Revlon’s share price has fallen by 80.7%. U.S. billionaire Ron Perelman, the owner of Revlon, was in talks with several capital management firms about restructuring plans ahead of the bankruptcy filing. Ron Perelman’s private equity firm bought Revlon in 1985, and he may lose control of Revlon after the reorganization.

According to Revlon’s financial report for the first quarter of fiscal year 2022, as of the end of March 2022, Revlon’s long-term debt was US$3.31 billion (approximately RMB 22.2 billion), plus short-term borrowings, etc., the cumulative debt was 30 billion yuan. According to foreign media reports, sales of Revlon have been hampered by supply bottlenecks due to the epidemic, the failure to quickly change its business scope according to consumer demand and other US startups taking market share.