Revlon had filed for bankruptcy earlier this week after disruptions in the global supply chain drove up raw material costs and impelled vendors to ask for upfront payments
Mukesh Ambani-owned Reliance Industries Ltd. (RIL) is mulling buying out Revlon Inc in the United States (US), days after the cosmetics behemoth filed for bankruptcy, ET Now reported on Friday, citing sources. Revlon had filed for bankruptcy earlier this week after disruptions in the global supply chain drove up raw material costs and impelled vendors to ask for upfront payments.
RIL is now considering bidding for the cosmetics maker that filed for Chapter 11 bankruptcy protection in the US. Founded 90 years ago in New York, Revlon has been a mainstay in stores, with its products like Almay and Elizabeth Arden becoming household names.
However, the company failed to keep up with changing consumer tastes over time. Furthermore, Revlon also lost market share to big competitors like Procter and Gamble, newcomers like Kylie Jenner and other celebrities who successfully capitalized on the huge social media following of the famous faces that donned the products.
The COVID-19 pandemic also exacerbated Revlon’s problems, which was already weighed down by increasing debt.
Shares of Revlon were up 20% to $2.36 in pre-market trade after the report came out. Reliance jumped 1.9% on the BSE index.