The cosmetics maker has fallen victim to global supply chain disruptions that pushed up raw material costs and prompted vendors to demand upfront paymentsIn its bankruptcy filing, Revlon said supply chain disruptions prompted intense competition for ingredients used to make its products.Cosmetics maker Revlon has filed for bankruptcy, falling victim to global supply chain disruptions that pushed up raw material costs and prompted vendors to demand upfront payments.
“For example, one tube of Revlon lipstick requires 35 to 40 raw materials and component parts, each of which is critical to bringing the product to market,” Robert Caruso, who was hired as Revlon’s chief restructuring officer, wrote in a court filing. Revlon, which was formed in 1932 by brothers Charles and Joseph Revson and Charles Lachman, started off selling nail enamel. It was sold in 1985 to MacAndrews & Forbes — which remains the controlling shareholder and is owned by Ron Perelman — and went public 11 years later.
The company also made headlines two years ago when Citigroup accidentally sent nearly $900m of its own money to Revlon’s lenders. An attorney representing junior creditors, Clark Whitmore, said in court the senior lenders' “feeding frenzy” would destroy value for stakeholders lower on the food chain.