Revlon Inc. filed for chapter 11 bankruptcy as the global supply chain crunch proved the tipping point for the debt-laden company that has struggled to tap into a broader cosmetics sales boom driven by social-media influencers, Bloomberg News reported. The bankruptcy caps a tumultuous period for the cosmetics giant, owned by billionaire Ron Perelman’s MacAndrews & Forbes, which suffered during the pandemic after years of declining sales and endured financial controversies that the company said Thursday could “impede” its restructuring process. At issue is a disputed asset transfer largely in 2020, which saw Revlon stave off default by cutting a deal with lenders that moved collateral out of other creditors’ reach. The financing maneuver angered those who missed out and sparked years of litigation. It also inadvertently embroiled Citigroup Inc. after the bank helped arrange the deal, and later mistakenly paid some creditors nearly $900 million while intending to process a routine interest payment. That marked one of the industry’s most legendary snafus — leading to ongoing litigation over ownership of the $500 million not returned by recipients. The company said in court filings Thursday that the resulting “uncertainty” over who holds a slew of term loans “is likely to impede” the chapter 11 process.
