Cosmetics company Revlon has emerged from bankruptcy, having cut more than $2.7 billion in debt.

The company, which sells beauty products like lipsticks and nail polish, filed for bankruptcy in June 2022. At the time, the company said that its $3.5 billion debt load and pandemic-related disruptions left it in too cash-poor a state to make payments to critical vendors in its supply chain.

Announcing its exit from bankruptcy, Revlon said that its lenders have taken ownership of the company in exchange for the debt reduction agreement. This has wiped out the equity value of existing shareholders.

In a statement, chief executive Debra Perelman said: “Less than a year after beginning the financial restructuring process, I’m proud to say that we are emerging today as a stronger company that is well positioned for long-term growth.

"With a simplified capital structure, significantly reduced debt, and a new, highly experienced and committed board of directors, we look forward to unlocking the full potential of our globally recognised brands and continuing to offer our customers the iconic products they have loved for decades.”

The post-bankruptcy board of directors includes former Bloomin’ Brands chief exec Elizabeth Smith, former Walgreens Boots Alliance finance chief Timothy McLevish and former Sephora boss Martin Brok.

At the time of its bankruptcy, Revlon’s largest shareholder was MacAndrews & Forbes – owned by Perelman’s father Ron Perelman – which held an 85 per cent stake in the company. Its new owners include Glendon Capital Management, King Street Capital Management, Angelo Gordon & Co, and Oak Hill Advisors.

The company has also officially changed its corporate name to Revlon Group Holdings. It exited bankruptcy with $1.5 billion in debt and $236 million in available liquidity with plans to raise $670 million by selling new equity shares.

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