Revlon Emerges from Chapter 11 as Private Company with Strong Financial Footing and New Board of Directors
Revlon, one of the world’s leading beauty companies, has announced that it is emerging from Chapter 11 as a private company on strong financial footing. The company has significantly simplified its capital structure by eliminating more than $2.7 billion in debt from its balance sheet, leaving it with approximately $1.5 billion of debt outstanding. Revlon has secured approximately $236 million of liquidity through an equity rights offering, a new money senior secured credit facility, and new asset-based loans. The company is expected to emerge with approximately $285 million of liquidity. The majority of the reorganized equity is now owned by former lenders, including affiliates of Glendon Capital Management LP, King Street Capital Management, L.P., Angelo, Gordon & Co., L.P., Antara Capital LP, Nut Tree Capital Management, LP, Oak Hill Advisors, L.P., and Cyrus Capital Partners, LP, among others.
Elizabeth Smith, former CEO of restaurant chain operator Bloomin’ Brands, owner of dining concepts that include Outback Steakhouse, has been appointed as the executive chair of the company’s reorganized board. The board will also include senior executives with deep knowledge of the global consumer, retail, and beauty industries, including Martin Brok, former Global President and Chief Executive Officer of Sephora; Timothy McLevish, former Chief Financial Officer at Walgreens Boots Alliance, Inc.; Hans Melotte, former President of Starbucks’ Global Channel Development; and Paul Pressler, Chairman of the Board of Directors of eBay, Inc.
Revlon’s bankruptcy ended nearly four decades of ownership by billionaire financier Ronald Perelman, who bought the company in 1985. Perelman’s stake in the company was wiped out after Revlon filed for bankruptcy in June 2022 with a debt of $3.7 billion. Perelman’s daughter Debra, who has led the company since 2018, will remain as CEO and a member of the board.
Revlon’s President and Chief Executive Officer, Debra Perelman, said: “Today marks an important moment in Revlon’s history and evolution. Less than a year after beginning the financial restructuring process, I’m proud to say that we are emerging today as a stronger company that is well positioned for long-term growth. With a simplified capital structure, significantly reduced debt, and a new, highly experienced and committed Board of Directors, we look forward to unlocking the full potential of our globally recognized brands and continuing to offer our customers the iconic products they have loved for decades.”
Revlon is aiming to invest for the future, serve its loyal customers with high-quality beauty products they know and love, and introduce its beloved brands to the next generation of Revlon consumers around the world. Noah Charney, Managing Director at King Street Capital Management, L.P., remarked: “On behalf of Revlon’s new shareholder group, we are proud to serve as stewards of this storied American business and support the Company as it embarks on its path to sustainable, profitable growth.”
Additional information, including court filings and other documents related to the court-supervised process, is available on the Company’s restructuring website. Revlon’s emergence from bankruptcy as a private company with a simplified capital structure and a new, experienced board of directors is a positive development for the company and its stakeholders, and it will be interesting to see how it grows and evolves under its new ownership.
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