Reliance looking to buy out Revlon in US: report
20 Jun 2022
Reliance Industries Ltd (RIL) is considering buying out cosmetics maker Revlon Inc, which has filed for bankruptcy in the United States, reports citing sources said on Friday.
Debt-laden Revlon filed for bankruptcy earlier this week after global supply chain disruptions drove up raw material costs and prompted vendors to demand upfront payments.
Revlon, which is owned by billionaire Ron Perelman’s MacAndrews and Forbes, was in talks with lenders ahead of looming debt maturities to try to steer the business clear of bankruptcy, according to the WSJ report.
While demand for cosmetic products has bounced back in recent months as economies emerge from the prolonged effects of the Covid-19 pandemic, Revlon, is facing stiff competition from native brands and online marketing start-ups while also facing supply chain problems.
New York-based Revlon has been struggling amid competition from Estee Lauder Cos and a host of smaller companies using social media to lure customers.
Reliance, meanwhile, has been pushing its way into the fashion and personal care space in recent months as it diversifies away from its mainstay oil business. It has already established a foothold in telecom and retail sectors.