Net sales tumbled by 11% in Revlon’s first quarterly results since filing for bankruptcy in June
Revlon has named Matt Kvarda, Managing Director at professional services firm Alvarez and Marsal, as its new interim CFO.
The appointment comes as the company grapples with declining sales and its recent bankruptcy filing.
Kvarda takes over from Victoria Dolan, who is retiring from the position, and will start at the company on 1 October, reporting to Revlon CEO Debra Perelman.
Before joining Alvarez and Marsal, Kvarda was a Senior Director at Big Four accountancy firm KPMG.
He has also held positions at Arthur Andersen & Co and Bank of America.
“I want to thank Victoria for her tremendous dedication and numerous contributions over the past four years as part of our team and I wish her all the best in retirement,” said Perelman.
“We are fortunate to have Matt on board and look forward to working closely with him to drive forward the restructuring process in the months to come.”
The legacy beauty giant posted lacklustre second quarter results for 2022, with net sales declining by 11% to US$442.6m during the period ended 30 June.
This was coupled with reported net losses of $275.6m, the result of charges related to the company's Chapter 11 filing, lower operating income and foreign currency losses.
Reported operating losses also decreased to $29.5m, compared with the profits of $14.5m Revlon reported a year earlier.
This was driven by the slump in net sales, increased administrative expenses and restructuring charges.
Revlon fell into bankruptcy on 17 June 2022, after years of increasing competition from agile D2C competitors, supply chain issues and a consumer shift from make-up to skin care.
Revlon previously escaped bankruptcy in 2020 after successfully tendering $236m of bondholder notes, but supply chain issues and inflation have proved too much to bear.
Despite a recent welcome uplift in sales, the company has struggled for years with annual sales tumbling from $2.6bn at its peak in 2017 to $1.9bn in 2020.
However, the embattled beauty giant saw a jump in shares after a US$1.4bn bankruptcy loan was approved on 1 August.
Stocks in the company rose by 3.63% to $9.59 per share, a jump of 60.9% when compared with the extended slump it saw after filing for Chapter 11.
David Jones, a US Bankruptcy Judge in Manhattan, originally allowed the company to receive $375m following its bankruptcy announcement, Reuters reported.
The loan, however, was met with objections from junior creditors, who were concerned it would prevent them from recovering assets from the cosmetics goliath.
Jones approved the loan, stating the funds were essential for the business to continue operating during the bankruptcy.