Revlon Inc. filed for bankruptcy, potentially ending a decades-long bet on the beauty products company by Ronald Perelman, its billionaire controlling shareholder, the Wall Street Journal reported. Mr. Perelman bought Revlon in 1985 and built a reputation for always riding to its rescue when its future looked bleak, often through rescue loans or cash infusions. Now he faces losing control of the cosmetics business as it confronts a heavy debt load, inflation and supply-chain pressures and competitive threats. Revlon filed for bankruptcy in the U.S. Bankruptcy Court in New York on Wednesday. The move to reorganize gives Revlon a chance to shed debt and chart a path forward for the business, which was in talks with certain lenders ahead of the chapter 11 filing. The New York-based company is among the last remaining holdings of Mr. Perelman, a private-equity financier whose deal for Revlon was one of the original high-profile leveraged buyouts. His investment firm, MacAndrews & Forbes Inc., owns roughly 85% of the business, which his daughter Debra Perelman runs as chief executive. Revlon narrowly avoided bankruptcy in 2020 after lockdowns emptied malls, salons and spas nationwide. Sales are now rebounding, but the company also is contending with a debt load of roughly $3.3 billion as of March, according to securities filings. Revlon found itself in a bind for years with too much debt, according to analysts, and lost some of its gloss as consumer habits changed and new competition emerged. The COVID-19 pandemic worsened matters by sapping consumer traffic in key shopping areas.
