Revlon, the iconic cosmetics manufacturer, has emerged from bankruptcy after less than a year under new ownership. The company has reduced its debt by over $2.7 billion and now has $236 million in available liquidity following its Chapter 11 filing in mid-2022. Revlon is now rebranded as Revlon Group Holdings, with a new board derived from former executives from Walgreens Boots Alliance, Starbucks, and former officials from the Federal Reserve of Atlanta, among others. The board is headed by Elizabeth A. Smith, a former chairwoman and CEO of Bloomin’ Brands.
Revlon’s previous struggles were primarily due to its $3.5 billion debt burden and pandemic-related supply chain disruption. Its creditors took control of the company after it filed for bankruptcy in June 2022. Its new owners from the bankruptcy, such as King Street Capital Management, Oak Hill Advisors, and Cyrus Capital Partners LP, now own most of the reorganized equity.
With its first-quarter sales of $490 million beating projections set forth in December, Revlon seems to be well positioned for long-term growth. The company has vast potential waiting to be unlocked. Revlon’s CEO Debra Perelman said, “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.”
The new board members include Martin Brok, former global president and CEO of Sephora; Hans Melotte, former president of Starbucks global channel development and chief procurement officer at Johnson & Johnson; Timothy McLevish, a former CFO for Walgreens, Kraft Foods, and Ingersoll-Rand; and Paul Pressler, chairman of eBay’s board of directors, formerly CEO of Gap and chairman of Walt Disney Parks and Resorts. These new appointments replace all existing board members, who will leave once Revlon emerges from bankruptcy.
However, experts suggest that Revlon needs to focus on creating cutting-edge products to regain significant market share, especially in a crowded marketplace full of influencers and celebrity brands. Its new board members are heavy hitters untested in the beauty industry, and it may need to bring on board seasoned executives to design the company’s rebuilding plans. The company’s debt was too high, and it lacked innovation to stand out.
Revlon’s emergence from Chapter 11 bankruptcy as “Revlon Group Holdings” is a crucial step towards a revived future. Its new owners and board of directors are well-positioned to lead the company along a path of growth and profitability. The beauty industry is exceptionally fickle, and Revlon must now leverage the expertise of its new board and create cutting-edge products to stay relevant amidst growing competition. With renewed vigor and former industry heavyweights leading the charge, Revlon is poised to regain its former glory and win back its customers’ loyalty.
