Revlon files for bankruptcy, falls short of competition from Kylie Jenner and Rihanna. After 90 years of innovating in feminine beauty. The world-renowned cosmetics brand could not overcome the series of crises that had been dragging on for a few years and that they increased with the health emergency and due to competition in the market.
This situation led the New York company to go to court to declare bankruptcyafter sinking due to the debts it accumulated in its attempt to compete with other firms that sell their products through the Internet and that are also more innovative, according to beauty experts.
Added to this is the fact that the company founded in 1932 by brothers Charles and Joseph Revson and Charles Lachman, has lost customers after celebrities decided to start their own cosmetics business, such as Kylie Jenner’s Kylie Cosmetics and Rihanna’s Fenty Beauty.
Another great rival in the market is Procter & Gamble, which together with the cosmetic lines launched by the stars, successfully capitalized on the massive social media following of famous faces of the artists who present the products.
Revlon’s problems intensified with the health emergency by Covid, not only because of the worldwide confinement, but because of the use of face masks that caused women to stop buying lipstick. Sales fell 21 percent in 2020.
Although in the most recent quarter ending in March, sales increased almost 8 percent, the company is still below pre-health emergency levels of over $2.4 billion a year. A this is compounded by global supply chain disruptions.
This situation is hampering hundreds of international companies, but in recent months it has had too much impact on Revlon, barely managing to come out of losses in 2020.
Revlon broke racial barriers and dictated beauty trends for much of the last century, trailing only Avon in sales. It now ranks 22nd among cosmetics manufacturers, according to fashion magazine WWD.
Also, it became the first beauty company to feature a black model in 1970, Naomi Sims. While In the 1980s, the company launched the cosmetics industry by putting famous models, such as Claudia Schiffer and Cindy Crawford, at the forefront.
After declaring bankruptcy, the company awaits the approval of the American court so that $575 million in financing from its existing lenders, allowing it to keep its day-to-day operations running.
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Revlon files for bankruptcy, falls short of competition from Kylie Jenner and Rihanna
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