Post by account_disabled on Feb 26, 2024 22:43:06 GMT -6
Multinational cosmetics giant Revlon has filed for Chapter 11 bankruptcy protection in the US, which grants the company the support to continue operating under a pause on its debt payments while it restructures.
According to The Guardian , the pandemic and disruptions to its supply chain have driven Revlon into bankruptcy. However, in an industry with constant changes, such as the beauty sector, Corporate Social Responsibility plays a primary role in business. What has happened in the case of this brand?
Revlon bankrupt
Revlon bankrupt
In recent years, Revlon has lost shelf space and sales to Chinese American Phone Number List new, celebrity-endorsed brands such as Kylie Jenner's Kylie Cosmetics and Rihanna's Fenty Beauty. In addition to being affected by problems in its supply chain, which were worsening with the COVID-19 pandemic, the shortage of product on shelves was another triggering factor that led Revlon to bankruptcy.
While, by filing for Chapter 11 bankruptcy protection, Revlon president and CEO Debra Perelman hopes to gain time to allow her to “strategically reorganize” her finances, the reality is that the future scenario does not look good at all.
Revlon plans to push its case with $575 million in debtor-in-possession financing from its existing lender base, but its shares have fallen more than 80% since the beginning of the year.
Revlon bankrupt
The beauty industry
Globally, the skin care, cosmetics and personal care industry has seen incredible growth during 2020. Although there was a drop in global sales of 33%, the sector endured and experts predicted a return to growth for 2022.
However, this has not been the case for Revlon, since, as reported by Fast Company , the brand's financial turbulence has been present even before the pandemic. In 2020, the corporation had already announced that, after obtaining sufficient support from its existing bondholders, it narrowly avoided bankruptcy.
Added to this is that there are fewer and fewer barriers, not only to launch a beauty brand, but to promote it. Between platforms like Tik Tok and Instagram, influencers of all levels can reach consumers in new ways. For more generic beauty companies, this is great competition, and perhaps the combination of these factors could have led Revlon to bankruptcy.
Bet on CSR
Revlon has faced accusations of using carcinogenic chemicals in the manufacturing of its cosmetics . And although he responded that the allegations were false, months later he published a new ingredient policy.
According to the company, such modifications were already planned long before, but activists helped it realize that it was not communicating its efforts. Alexandra Gerber, VP of Revlon, indicated that the change was in transparency. The latter is one of the main lines of action of Corporate Social Responsibility (CSR), which contributes to the corporate image and adds value to the different interested parties.
In addition to entering late to meet new consumer preferences and habits, could it be the lack of transparency, communication and listening to its stakeholders that has led Revlon to bankruptcy.
According to The Guardian , the pandemic and disruptions to its supply chain have driven Revlon into bankruptcy. However, in an industry with constant changes, such as the beauty sector, Corporate Social Responsibility plays a primary role in business. What has happened in the case of this brand?
Revlon bankrupt
Revlon bankrupt
In recent years, Revlon has lost shelf space and sales to Chinese American Phone Number List new, celebrity-endorsed brands such as Kylie Jenner's Kylie Cosmetics and Rihanna's Fenty Beauty. In addition to being affected by problems in its supply chain, which were worsening with the COVID-19 pandemic, the shortage of product on shelves was another triggering factor that led Revlon to bankruptcy.
While, by filing for Chapter 11 bankruptcy protection, Revlon president and CEO Debra Perelman hopes to gain time to allow her to “strategically reorganize” her finances, the reality is that the future scenario does not look good at all.
Revlon plans to push its case with $575 million in debtor-in-possession financing from its existing lender base, but its shares have fallen more than 80% since the beginning of the year.
Revlon bankrupt
The beauty industry
Globally, the skin care, cosmetics and personal care industry has seen incredible growth during 2020. Although there was a drop in global sales of 33%, the sector endured and experts predicted a return to growth for 2022.
However, this has not been the case for Revlon, since, as reported by Fast Company , the brand's financial turbulence has been present even before the pandemic. In 2020, the corporation had already announced that, after obtaining sufficient support from its existing bondholders, it narrowly avoided bankruptcy.
Added to this is that there are fewer and fewer barriers, not only to launch a beauty brand, but to promote it. Between platforms like Tik Tok and Instagram, influencers of all levels can reach consumers in new ways. For more generic beauty companies, this is great competition, and perhaps the combination of these factors could have led Revlon to bankruptcy.
Bet on CSR
Revlon has faced accusations of using carcinogenic chemicals in the manufacturing of its cosmetics . And although he responded that the allegations were false, months later he published a new ingredient policy.
According to the company, such modifications were already planned long before, but activists helped it realize that it was not communicating its efforts. Alexandra Gerber, VP of Revlon, indicated that the change was in transparency. The latter is one of the main lines of action of Corporate Social Responsibility (CSR), which contributes to the corporate image and adds value to the different interested parties.
In addition to entering late to meet new consumer preferences and habits, could it be the lack of transparency, communication and listening to its stakeholders that has led Revlon to bankruptcy.