(NEW YORK) -- Revlon has officially filed for bankruptcy.
The 90-year-old cosmetics giant announced on Thursday that the company voluntarily petitioned for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.
Like many other companies, the company has been faced with ongoing global challenges that specifically point to supply chain and rising inflation issues, in addition to the brand's continued obligations to its lenders.
This legal proceeding was filed with the intention to allow Revlon to strategically reorganize its legacy capital structure and improve its long-term outlook.
"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, Revlon's president and chief executive officer, in a statement. "Consumer demand for our products remains strong -- people love our brands, and we continue to have a healthy market position. But our challenging capital structure has limited our ability to navigate macro-economic issues in order to meet this demand."
With court approval, the company said it could receive $575 million in debtor-in-possession financing from its existing lender base. In addition to its existing working capital, this will provide the company with more financial support for day-to-day operations, it said.
"By addressing these complex legacy debt constraints, we expect to be able to simplify our capital structure and significantly reduce our debt, enabling us to unlock the full potential of our globally recognized brand," said Perelman.
Revlon was founded in New York City in 1932 by brothers Charles and Joseph Revson and chemist Charles Lachman. In 2016, it was acquired by Elizabeth Arden and its portfolio brands.
Today, Revlon has grown to include cosmetics, skincare, fragrance and personal care. Some of the company's sister brands include Almay, Creme of Nature, celebrity fragrances from Britney Spears, Christina Aguilera and more.