Revlon, the 91-year-old cosmetics company, has emerged from bankruptcy protection less than a year after filing for Chapter 11, with new owners, a revamped board and significantly less debt. The company eliminated over $2.7 billion of its debt from its balance sheet, reducing it to $1.5 billion, and has $236 million in available liquidity. Revlon’s creditors, including Oak Hill Advisors, Cyrus Capital Partners, Glendon Capital Management, and Angelo, Gordon & Co. have taken ownership of the firm under the terms of the agreement. Collectively, they now own over 80% of Revlon’s reorganized equity.
Revlon’s restructuring included its largest shareholder, MacAndrews & Forbes, founded by Ron Perelman, ceding its control in the company. Former executive chair of Bloomin’ Brands, Elizabeth A Smith, has been named as the company’s new executive chair. The board includes several corporate heavyweights, such as Timothy McLevish, the former chief financial officer of Walgreens, and Paul Pressler, former CEO of Gap, Inc.
Revlon’s emergence from Chapter 11 bankruptcy comes amid disruptions caused by the pandemic, with sales in the past year totaling $2 billion, placing it at the 23rd position in Beauty Inc.’s Top 100 biggest beauty manufacturers. The lofty task now facing Revlon’s new leadership is to claw back lost market share in a competitive beauty market. The company’s Q1 2021 earnings, showing net sales of $490 million, albeit slightly better than forecasted, are still negatively impacted by the ongoing global pandemic.
According to many industry insiders, the future viability of Revlon is highly dependent on the success of its new leadership and their ability to create a strong brand-building strategy. WWD reports that a top executive’s experience with beauty brands is crucial to Revlon’s rebuilding mission. Success for the cosmetics company requires a new vision to compete in a crowded global beauty market.
Revlon’s new executive chair, Elizabeth A. Smith, has expressed excitement about the strategic vision for the company, saying that Revlon is now better positioned for growth. The company’s new board, she said, will usher in a new era and execute against the significant opportunities ahead, delivering enduring value to all Revlon’s stakeholders. The future of the once-loved beauty brand is now in the hands of its new leadership and owners, as the company embarks on a journey to reclaim its place in the global beauty market.
