Revlon, the American Cosmetic multinational company filed for bankruptcy. The company was unable to avail the customers for its products on time. There was disruption in the supply chain of raw materials from China to the United States at overpriced rates.
Since the inflation customers have begin to pull back spending on discretionary items leaving more companies into distress bankruptcy.
The company has listed assets and liabilities between 1$ billion and 10$ billion according to the filling with U.S Bankruptcy court for the Southern District of New York. Revlon has a long-term debt of $3.31 billion as of March 31.
The Company’s acquisition includes Coty’s ‘cutex’ and Elizabeth Arden. The havoc of the pandemic has left the company to file for chapter 11 of the bankruptcy protection.
Chapter 11 of the Bankruptcy Code:-
‘A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy. Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money’.