We know everything about bankruptcy
24/11/2024
Sunday
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
WILL REVLON COMPANY MANAGE TO AVOID BANKRUPTCY?
Last fall, American cosmetics company Revlon managed to avoid bankruptcy by negotiating with creditors ahead of the deadline for default. However, experts express fears that the company will not get away from problems in 2021 - debts requiring refinancing have only increased and the growth of the brand portfolio has been seriously slowed down against the background of competitors.
The global cosmetics giant, which is suffering losses during the pandemic, has achieved the postponement of loan maturities until 2024 and got time necessary to stabilize its financial activities. According to the various sources, the company's sales volume fell significantly last year.
As of the end of September, net sales went down by more than a quarter and amounted to $ 1.27 billion.
Even the most successful brands owned by Revlon have felt the downturn. Elizabeth Arden-branded products sold 20% worse than in 2019. The nine-month revenue was only $ 282.4 million
Critics point out that the company needs a significant modernization of its marketing technologies, which have been based primarily on working with celebrities used as brand faces in advertising for years. At the same time, competitors have long been using the services of bloggers in social networks and rely on motivating Internet users to create original content.
In August 2020, the company signed a contract with the famous American singer, performing under the pseudonym Megan Thee Stallion – previously, she became popular thanks to her videos on Instagram. Now Megan has received the status of the official representative of the Revlon brand.
Over the past year, the company had to go through the restructuring of the top management team.
According to the data released in 2021, the company plans to “double down on the key initiatives,” including growth in Asian markets (primarily in China) and increase sales of skin care products. The company plans to advance its digital experience from a number of startups by developing a new e-commerce strategy that requires more flexibility.
At the same time, analysts note that the capital structure remains the main issue for further business development. It will be necessary not only to suppress investor dissatisfaction amid the company's problems in 2020, but also to accelerate the transition to new business practices.
