An interesting tidbit from the world of big cosmetic companies …
Cosmetic company Revlon filed for Chapter 11 bankruptcy last month, due to mountains of debt (around $3.3 billion), little cash to support it and supply chain issues.
Chapter 11 bankruptcy allows the business to propose a plan for reorganization to keep the business alive and pay creditors over time.
During the past month, Revlon has secured additional loan(s) to help carry the company while the restructuring takes place.
Among other things in the bankruptcy proceedings, the US Trustee’s Office has requested that the judge reject Revlon’s request to pay $16.4 million in retention bonuses to its employees and some attorneys in the case want to charge $2,000 per hour ($1,000 per hour for junior attorneys)!
Meantime, Revlon’s stock surprised everybody when it unexpectedly soared 600% over the last few weeks – from $1.92 per share up to $8.14 per share!
There have been noises from Reliance Industries, a multi-gazillion dollar company in India, to purchase Revlon out of bankruptcy, but nothing has been finalized.
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