Cosmetics maker Revlon Inc has filed for bankruptcy protection in the United States.
In filing for Chapter 11 protection under US bankruptcy law, Revlon said that the supply chain disruptions in the spring had sparked intense competition for inputs used to make its products. At the same time, suppliers that traditionally offered up to 75 days for payment began demanding cash before new orders, as labor shortages and inflation added to their problems, she said.
Known for its nail polishes and lipsticks, the 90-year-old company listed assets and liabilities of between $1 billion and $10 billion in the bankruptcy filing.
Revlon, founded in 1932 by brothers Charles and Joseph Revson and Charles Lachman, has slumped in sales and lost shelf space in recent years to celebrity-backed startups like Kylie Jenner’s Kylie Cosmetics and Rihanna’s Fenty Beauty.
“The brands in their portfolio are a little older and don’t deliver the hype that the contemporary customer is looking for,” said Thomai Serdari, a professor of marketing at New York University.
The company’s shares fell close to 40% on Thursday and closed the session down 13%.
The company said none of its international units, except Canada and the UK, are part of the US filing process.
With information from Reuters