The cosmetics giant Revlon filed for bankruptcy today due to “liquidity problems” due to the global impacts produced by high inflation, persistent obstacles in the global supply chain and long-term obligations with its creditors.

The company issued a statement announcing that it is voluntarily filing for Chapter 11 in the Bankruptcy Court for the Southern District of New York.

According to CNBC, the company had a long-term debt of 3,310 million dollars on March 31, while its market capitalization was 123 million dollars at the close of the Wall Street stock market this week.

In the hours before the opening of the stock market, the company paralyzed operations on its shares, which fell 4.44%.

The bankruptcy filing will allow Revlon to continue all of its operations as it tries to “reorganize its capital structure and improve its long-term prospects.”

If the bankruptcy court approves the declaration, Revlon expects to receive financing of 575 million as a debtor in possession (“DIP”), which will allow it to support its current operations, since, according to what it maintains, it still enjoys “a strong creditor support” of the company.

Revlon CEO Debra Perelman stressed in her statement that the company is committed to making its restructuring “as smooth as possible for our shareholders, employees, customers and vendors.”

Founded in 1932, the company is one of the most important in the field of cosmetics -especially hair cosmetics-, it is present in 150 countries, employs around 6,000 people and owns iconic brands such as Elizabeth Arden, Mitchum, Cutex, as well as of some associated with personalities such as Britney Spears or Christina Aguilera.

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