Revlon, the once sought-after cosmetic empire, filed for Chapter 11 bankruptcy protection on June 15 to overcome a crippling debt. The company experienced a series of problems in recent years. Their struggles include:
- A pandemic-related decline in sales.
- Emerging competition from modern beauty brands.
- The logistics woes due to the global supply chain crisis.
The firm expected to secure $575 million in bankruptcy financing from current lenders as it tries to reorganize the business. Here’s a closer look at the rise and fall of Revlon.
A Timeline: What Led to The Rise and Fall of Revlon
Before the company’s current situation, Revlon was both a cosmetics titan and a key player in pop culture, with its sensational advertising campaigns and myriad celebrity endorsers.
1932-1949
- In 1933, brothers Charles and Joseph Revson and chemist Charles Lachman founded Revlon in New York City.
- The company started by making a unique nail enamel mixed with various pigments to create a variety of shades of nail polish.
- As the business expanded, Revlon began by investing in advertising. Its first ad was published in New Yorker magazine in 1935.
- Revlon diversified into other cosmetics in the succeeding years and introduced its first lipstick in 1939.
1955 to Early 1970s
- By 1955, sales ramped up, and the company decided to expand globally.
- Revlon continued to build a strong brand presence with efforts like sponsoring “The $64,000 Question” television show in 1965. And in 1973, the company hired its first brand ambassador, model, and actress, Lauren Hutton.
1985 to 1996
- Revlon was sold to MacAndrews & Forbes in 1985. It was a deal led by Ronald Perelman, who took over as chief executive officer of the beauty giant.
- Revlon filed for its initial public offering at the New York Stock Exchange in 1996.
- Revlon continued to reach momentum with a series of splashy ad campaigns, celebrity spokesperson Halley Berry, who joined the company in 1996.
2000 to present
- Actress Emma Stone signed as Revlon’s model in 2011.
- Revlon’s celebrity ambassadors and supporters regularly help promote the company’s charitable events, including its annual Walk/Run For Women and star-studded Revlon Concert for the Rainforest Fund.
- The beauty giant has been assisting models in preparing for the runway at major fashion shows like New York Fashion Week.
- However, by 2013, Revlon began showing signs of struggle. After two years of slumping business, the company announced it was leaving China and cutting 1,100 jobs as part of a cost-cutting effort.
- Revlon acquired Elizabeth Arden in 2016 for $14 a share in an all-cash deal that totaled $419.3 million.
- In May 2018, Ronald Perelman’s daughter Debra was elected as chief executive of Revlon.
Amid an increasingly crowded beauty counter, Revlon struggled to keep up with emerging cosmetics brands such as Rihanna’s Fenty Beauty and Kylie Jenner’s Kylie Cosmetics. Revlon’s troubles persisted as the pandemic slammed the beauty industry and was further hit by the global supply chain crisis.
Sadly, 2022 is the worst year for Revlon. In June, the long-standing company filed for Chapter 11 bankruptcy protection. Debra Perelman said it is an attempt to help the 90-year-old brand find a “more straightforward path for our future growth. As we look back to the rise and fall of Revlon, let’s hope for their success in their attempt to reorganize and revitalize the business.
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