Revlon shares plunged 53% on Friday following revelations that the cosmetics maker is preparing to file for bankruptcy.
In news first reported by Reorg Research, Revlon could file for Chapter 11 protection as early as this week.
The legacy beauty name, which is owned by MacAndrews & Forbes, the company of billionaire Ron Perelman, narrowly avoided bankruptcy in 2020 after successfully tendering US$236m of bondholders notes.
The New York-based company had struggled to halt falling sales amid competition from smaller, social-media savvy competitors.
It was also hard hit by Covid-19 lockdowns impacting the wider make-up market, despite some green shoots of recovery in its colour cosmetics business in recent months.
Revlon had more recently backed its perfumery arm, with its first new fragrance launches in six years (Reign On and One Heart) launching in 2021, fronted by brand ambassadors Megan Thee Stallion and Sofia Carson.
However, as of end-March, Revlon’s long-term debt was a hefty $3.31bn, according to Reuters.