Revlon has officially exited bankruptcy.
The embattled beauty brand, which fell into administration in June 2022, eliminated more than US $2.7bn in debt from its balance sheet through an agreement with its lenders.
It still has approximately $1.5bn of debt outstanding, however.
But Revlon stressed that through a new money senior secured credit facility and asset-based loans, it is emerging from Chapter 11 on “strong financial footing”.
“Today marks an important moment in Revlon’s history and evolution,” said Revlon’s President and CEO Debra Perelman.
"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."
Following its Chapter 11 exit, the company has formed a new board of directors.
Revlon said it chose senior executives with deep knowledge of the global consumer, retail and beauty industries.
This includes former Avon Products President, Elizabeth Smith, who will serve as Executive Chair.
Other members include Martin Brok, who was previously Global President and CEO of Sephora.
Timothy McLevish, meanwhile, served as Chief Financial Officer at Walgreens Boots Alliance and Kraft Foods Group.
Hans Melotte is the former President of Starbucks’ Global Channel Development and Chief Procurement Officer at Johnson & Johnson
Debra Perelman became Revlon’s President and CEO in December 2022
Perelman will also remain on the company’s board.
“Bringing together this accomplished group of individuals for the benefit of all our stakeholders is a testament to the strength of our brands and future growth potential of the Company,” said Perelman.
“Upon emergence, we will have the capital structure and financial resources necessary to invest for the future, serve our loyal customers with high-quality beauty products they know and love, and introduce our beloved brands to the next generation of Revlon consumers around the world.”
Upon exiting bankruptcy, Revlon’s lenders will collectively own over 80% of Revlon’s reorganised equity.
“Our shareholder group’s investment in Revlon was driven by our belief in the enduring power of the Company’s iconic brands,” said Holly Kim, founding Partner at Glendon Capital Management, one of Revlon’s lenders.
“We have assembled a board of veteran leaders with proven track records of revitalising and scaling consumer brands, and we are excited to support them as they chart a new, sustainable path forward for Revlon."
The company’s lenders fully acquired Revlon in December 2022.
The move completely wiped out the business’ shareholders, and led to the ousting of long-time owner Ron Perelman.
“The plan confirmation is a critical milestone and positions Revlon to emerge from the restructuring process with a greatly simplified capital structure that will support the business going forward,” said Debra Perelman at the time.