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Cosmetic Giant Revlon Files for Chapter 11 Bankruptcy
17th June 2022 | Hong Kong
Revlon, a 90-year-old domestic giant founded in 1932 by brothers Charles Revson & Joseph Revson and chemist Charles Lachman, has filed for Chapter 11 bankruptcy with increasing losses, $3.8 billion of debts, competition, losing shelf space and supply chain issues (product shortages). With the bankruptcy filing, Revlon will receive $575 million in debtor-in-posession financing to fund its daily operations. Revlon CEO Debra Perelman: ”Today’s filing will allow Revlon to offer our consumers the iconic products we have delivered for decades, while providing a clearer path for our future growth.” Revlon had grew to become the 2nd largest makeup company behind Estée Lauder, and featuring top models including Cindy Crawford and Claudia Schiffer. In 1985, Revlon was acquired by Ron Perelman for $2.7 billion. In 1996, Revlon went public in 1996. In 2016, Revlon acquired luxury beauty brand Elizabeth Arden for $870 million. Prior to bankruptcy filing on 16th June 2022, Revlon market capitalisation is around $106 million.
” Cosmetic Giant Revlon Files for Chapter 11 Bankruptcy “
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Charles Revson
Charles Haskell Revson was born October 11, 1906 in Boston. In 1932, brothers Charles and Joseph Revson, and chemist Charles Lachman, founded Revlon. An American businessman and philanthropist, Revson believed, “in the factory we make cosmetics; in the store we sell hope.”
A strategic and skilled salesman, with an eye for color, Revson invented a revolutionary nail “cream enamel,” formulated with pigments in a wide variety of fashion shades, providing superior performance to the transparent, dye-based products of the time. Revlon began with a single product – in salons, with the belief that women would enjoy a manicure after having their hair done. He developed new colors each season to compliment women’s apparel. Soon, Revlon nail enamel was seen on fashionable women’s nails everywhere—including on the cover of Vogue.
Within a few years, he expanded his business to drug and department stores and had 21 shades of Cream Nail Enamel in 1938. By 1942, Revlon became a multi-million dollar company and, by the end of World War II, it was one of the U.S.’s top five beauty brands. Focused on quality and driven by fashion, in 1939, Revson introduced a range of lipsticks to match his Creme Nail polish and advertised the two products together as “Seen on the Fingertips and Lips of the nation’s smartest women…” This marked the beginning of his expansion into other beauty product categories.
A strong believer in advertising, and a marketing genius, he developed exotic and romantic names for his products, such as Fire and Ice, Cherries in the Snow, Plum Lightning, Moon Drops, and Ultima II. Revson was a pioneer and by 1956, was the sole advertiser of the hit gameshow The $64,000 Question. Revson was the first brand to sign an ambassador, Lauren Hutton for Ultima II, and brought on Richard Avedon as her exclusive photographer.
By the early 1960s, Revlon had subsidiaries in France, Italy, Argentina, Mexico and Asia and had successfully entered the fragrance market. In 1973, Revlon launched Charlie, a fragrance that personified the independent woman of the 1970s and was an instant global success.
Revson managed Revlon for 50 years. He served as the President of Revlon from 1932 to 1962, and then Chairman, until his death in 1975. Today, Revlon is sold in 150 countries. Known for his perfectionism, relentless drive and attention to detail, Revson created one of the most globally recognized and enduring beauty brands today.
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