The trend of companies preparing for an incoming recession in the next year continues.
This time, cosmetics beauty brand Revlon has filed for Chapter 11 bankruptcy due to growing debts, supply chain issues, and increased competition.
The company has been a staple in the beauty industry for 90 years, making history by putting models like Iman in their campaigns. However, changing beauty standards has caused Revlon to fall behind in the increasingly competitive industry.
In addition to its inability to keep up with other emerging beauty brands, the company also saw its sales tumble by 21% during 2020. However, sales grew around 8% in the first quarter of 2022 as the world slowly reopens and fewer people wear masks.
If its filing is approved, Revlon anticipates receiving $575 million in financing from current lenders that will help keep it afloat.
“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, who was CEO and president of Revlon.
Perelman added that consumer demand for Revlon products is strong, but challenges with limited supply chains and rising inflation have caused issues in meeting this demand.
Revlon is not alone in its struggles. Over the last few months, several big-name companies have warned about anticipated losses due to similar factors. Stocks across various industries, including tech and cryptocurrency, have plummeted with the US officially entering a bear market.