Revlon emerges from bankruptcy and announces new Board of Directors

Revlon, Inc. has completed its financial restructuring process and emerged from Chapter 11 bankruptcy, positioning itself for "future success and growth".

As part of this, the newly reorganised company has been renamed Revlon Group Holdings LLC.

With around £188 million ($236 million) of liquidity, funded through an equity rights offering, new money senior secured credit facility, and new asset-based loans, Revlon said it is emerging from Chapter 11 as a private company on "strong financial footing".

The company has simplified its capital structure by eliminating over £2.1 billion ($2.7 billion) in debt from its balance sheet, leaving it with approximately £1.1 billion ($1.5 billion) of debt outstanding.

The majority of the company’s reorganised equity is now owned by its former lenders, including affiliates of Glendon Capital Management, King Street Capital Management, Angelo, Gordon & Co, Antara Capital, Nut Tree Capital Management, Oak Hill Advisors and Cyrus Capital Partners, amongst others.

Debra Perelman, President and CEO of Revlon, said: "Less than a year after beginning the financial restructuring process, I’m proud to say that we are emerging today as a stronger company that is well positioned for long-term growth.

"With a simplified capital structure, significantly reduced debt, and a new, highly experienced and committed Board of Directors, we look forward to unlocking the full potential of our globally recognised brands and continuing to offer our customers the iconic products they have loved for decades."

In connection with its emergence from bankruptcy, Revlon has formed a new Board of Directors, including former Sephora CEO Martin Brok, former Walgreens Boots Alliance CFO Timothy McLevish, and eBay Chairman Paul Pressler, amongst others.

Revlon fell into bankruptcy in June 2022 after facing supply chain issues and large debt. At the time, the company said the filing would allow it to implement a financial restructuring of Revlon’s legacy capital structure and improve its long-term outlook.

Earlier this year, the company reported a drop in sales for the fourth quarter and full year ending 31 December 2022. Net sales decreased 4.1% to £483 million ($589.8 million), compared to £504 million ($615.2 million) in the fourth quarter of 2021.

Net loss totalled £146 million ($178.5 million), against a net income of £8.1 million ($9.9 million). This was attributed to charges related to the company's Chapter 11 bankruptcy filing, higher income tax provisions, and higher interest expenses.