Revlon exits bankruptcy after lender takeover

Revlon Inc said on Tuesday that it came out of bankruptcy after cutting more than $2.7 billion in debt and handing control of the beauty products company to its lenders.

CEO Debra Perelman said in a statement that Revlon is stronger after bankruptcy and well-positioned for long-term growth.

“We look forward to harnessing the full potential of our globally recognized brands and continuing to bring our customers the iconic products they have loved for so many years,” Perelman said. decade.

Revlon, which has a 91-year history of selling lipstick, nail polish and other beauty products, filed for bankruptcy in June, saying $3.5 billion in debt and related disruptions. The pandemic has left the company too short of cash to make timely payments to key suppliers in its cosmetics supply chain.

Revlon has filled its post-bankruptcy board with executives with experience from the consumer, retail and beauty industries, including former Bloomin’ Brand CEO Elizabeth Smith and former CEO of Bloomin’ Brands. by Bloomin’ Brands. Sephora Chief Executive Officer Martin Brok.

Revlon’s lenders took ownership of the company in exchange for a debt relief agreement, wiping out the equity value of existing shareholders.

The company’s largest shareholder is MacAndrews & Forbes, owned by Ron Perelman, Perelman’s father. MacAndrew & Forbes held 85% of the company’s shares at the time it filed for bankruptcy, and the remaining shares received skyrocketing interest from retail investors last year before falling in value. .

Revlon’s new owners include Glendon Capital Management, King Street Capital Management, Angelo Gordon & Co and Oak Hill Advisors.

King Street Capital CEO Noah Charney said the new owners are proud to “serve as stewards” of an “old-time American business”.

Revlon came out of bankruptcy with $1.5 billion in debt and $236 million available, according to the company.

Revlon reported $490 million in net sales for the first quarter, up year-on-year from $479.6 million.