As Retail Beauty recently reported, Revlon’s US parent company started its journey back from Chapter 11 bankruptcy in mid-April, following legal approval of its future re-structuring plans.
The company became private and no longer trades publicly and was given to the lenders of a 2020 loan, officially dubbed the BrandCo lenders. Longtime owner, Ron Perelman, is no longer in charge and Revlon has announced a new board of directors to steer its future fortunes.
The major lenders now in control include Glendon Capital Management LP, King Street Capital Management LP, Angelo Gordon & Co and Nut Tree Capital Management LP and they have appointed a seasoned new board with wide-ranging experience to guide Revlon’s comeback.
Debra Perelman, the daughter of Ron Perlman, will remain CEO, in addition to being a board member for the restructuring process.
Leading the board will be executive chair, Elizabeth Smith, the former CEO of Bloomin’ Brands, the leading US restaurant chain whose portfolio includes Outback Steakhouse. With proven experience over several industries, Smith was the former chair of the Federal Reserve Bank of Atlanta and former president of Avon. Her CV also includes 14 years at Kraft Foods and she is also currently on the boards of Hilton Worldwide Holdings and the Authentic Brands Group, whose subsidiaries include Reebok and Nautica.
Talking to the Wall Street Journal, Smith acknowledged that Revlon had been under-resourced and burdened with too much debt. “For the first time in years, Revlon will have the resources to reclaim its full potential”, she added.
The company navigated the Covid-19 pandemic but tipped into Chapter 11 bankruptcy because of supply chain issues and cost-of-living pressures. Under the restructuring plan, the company will shed US$2.7 billion in debt, leaving US$1.5 billion outstanding.
The rest of the board is a powerhouse elite group with extensive corporate experience. Key members include Martin Brok, former CEO of Sephora, Timothy McLevish, former CFO of Walgreens, Hans Melotte, who has held senior positions at Johnson & Johnson and Starbucks, and Paul Pressler, chairman of eBay Inc and former CEO of Gap Inc.
Smith emphasised the independence of the new Revlon directors and the fact that they are unaffiliated with the group of lenders recapitalising the business.
Holly Kim, a founding partner of Glendon Capital, noted that the new board members had a proven track record of revitalising and building consumer brands. The value of the Revlon business if on track to be worth US$3 billion going forward.
Revlon Australia and New Zealand was not affected by the parent company’s woes and has continued to perform strongly. The Australian business holds the #1 position in the lip, foundation and eyeshadow categories.
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