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Bankrupt cosmetics company Revlon is looking for a buyer. This was revealed in court filings related to the company’s bankruptcy that were made last week.
The news comes just a week after the New York Stock Exchange suspended trading of Revlon’s class A common stock, which had been trading under the ticker symbol REV. The move came after Revlon’s appeals to prevent it failed. NYSE expects to complete the full delisting of Revlon from its exchange sometime in the near future.
This may be what has led Revlon to simply sell out. But this will not be so easy considering the company’s $3 billion in debt and the ongoing financial crisis and worldwide inflation.
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Revlon, one of the best known cosmetics brands in the world, went bankrupt in June. The company –controlled by investor Ronald Perelman – was forced to seek protection under America’s Chapter 11 bankruptcy laws. And as Investopedia explains, “Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor’s business affairs, debts, and assets, and for that reason is known as “reorganization” bankruptcy.” It lets a company stay in business and restructure its obligations.
But things don’t seem to have been going well for Revlon in that respect and the delisting shows this.
And the Revlon junior creditors are not happy with the plans for a quick sale, if that will even be possible. Robert Stark, a lawyer for the junior creditors, called this a “big mess.”
“We have a very big and complicated mess on our hands,” he said. “It is not going to get done in two weeks.”
This is also not the time of year to be selling a cosmetics firm like Revlon. The Thanksgiving holiday in America is just weeks away and with it comes the official start of the Christmas shopping season. This means an opportunity for Revlon to bring in badly needed cash to help pay its debts. This would, in turn, raise the company’s eventual sale price.
