Multi-national company that owns Revlon has filed for Chapter 11 bankruptcy protection.

The company had suffered in the last few years as it lost market share to big companies such as Procter & Gamble and Estee Lauder, as well as new brands that thrive on social media such as Kylie Cosmetics and Fenty Beauty.

The brand’s debt problem aggravated with the pandemic, medical-grade masks take over the demand for lipsticks; its sales dropped 21% in 2020.

However, the company cited global supply chain disruptions as the factor leading to its bankruptcy.

The company has narrowly averted defaults multiple times by making debt deals with its creditors, as it struggles with more than US$3 billion of long-term debt.

Upon court approval, Revlon said it expects to receive US$575 million in financing from its existing lenders. This funding will allow the company to run its day-to-day operations.

“Today’s filing will allow Revlon to offer our consumers the iconic products we have delivered for decades, while providing a clearer path for our future growth,” said Debra Perelman. Perelman has been President and CEO of Revlon since 2018.

The proceedings don’t involve any of Revlon’s international operating subsidiaries, except for Canada and the United Kingdom.

Featured image taken from @revlon / Instagram.