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Revlon Bankruptcy: Cosmetic brand Revlon Inc. is on the verge of bankruptcy. Revlon, burdened by supply chain problems and heavy debt, is now preparing to apply for insolvency proceedings. Know how this company reached the floor from Arsh…
World’s renowned cosmetic brand Revlon Inc. (Revlon Inc) has reached the verge of bankruptcy. Revlon, burdened by supply chain problems and heavy debt, is now preparing to apply for insolvency proceedings. Today, even though this company is going through its worst phase, but at one time the first choice of girls was Revlon’s lipstick (Lipstick) and used to be nail-polis. Media reports have claimed that the company is talking to borrowers to save its business. In such a situation, the big question is that such a big brand today bankrupt ,BankruptcyWhy and how did it come to the brink of being?
How Revlon started, what records it made and how it reached the verge of bankruptcy, know the answers to these questions
The beginning of this company in bad times was the most surprising
Revlon was launched in New York City, USA. This company, which came into existence on 1 March 1932, surprised many veterans of that era because it started in the worst period of recession. Revlon was started by two brothers named Charles Revson and Joseph Revson. Chemist Cherise Latchman was also with the two brothers at the start of the company. That’s why the ‘L’ in their name has been added to the brand. In this way the name of the company was changed to Revlon instead of Revson.
To launch the brand, the three founder members created nail polishes that were made from pigments instead of dyes. It was such a pigment that does not dissolve easily in water. Therefore, it remained intact on the nails for a long time. This quality proved effective for their brand. As a result, this brand made a special identity among women. After this, many cosmetic products including lipstick were launched. Which was well liked.
Initially it was sold at pharmacies and departmental stores. In this way, it made its inroads among the consumers who reach here.
Record made even in recession
Even during the recession, Revlon made a record in terms of earnings. After the beginning, in the next 6 years, the business of billions of rupees surprised many bigwigs of the business world. By World War II, Revlon became America’s second largest cosmetics company.
The company added every category by launching the product in its different division. For example, the first division was Revlon. The second division was created under the name of Elizabeth Arden Inc. Skin care products were launched under this division. Its third Ultima-2 segment became the most premium bond. There itself, The company also created the Britney Spears fragrance brand for the fragrance.In this way, the company has increased its base by targeting different segments of customers.
reached the verge of bankruptcy
The Revlon Company was sold on 5 November 1985. It was bought by Pantry Pride Company. After this takeover, the company was named Revlon Group Inc. On February 28, 1996, Revlon was listed on the New York Stock Exchange and its IPO was issued.
Several reasons have been given for its bankruptcy. Like- increasing debt on the company, inability to supply according to the demand of customers and loss due to lockdown due to Kovid. Due to not being able to overcome all these three difficulties, the company reached the verge of bankruptcy.
In the era of Corona, the demand for cosmetic among women decreased on a large scale. The company, which was already facing difficulties, got a big blow from this. Revlon’s profits fell to a record low and the company is applying for bankruptcy proceedings.