Revlon is confident it will exit bankruptcy by April this year amid another consecutive quarter of declining sales in Q4 2022.
The embattled beauty brand said it expects to emerge from Chapter 11 bankruptcy later this year as a privately held company.
This also includes the global settlement of litigation claims brought forward by a number of company’s lenders.
But Revlon also recorded sales of US$589.8m during the fourth quarter of 2022, a decrease of 4.1% compared with the same period in 2021.
Despite sales being impacted by unfavourable currency conditions, operating income increased by $5.6m to $72.8m during the trading period.
The jump in operating income was driven primarily by a $28.4m decrease in general and administrative expenses.
Net losses amounted to $178.5m in Q4, however, compared with the $9.9m net income it reported last year.
The losses were attributed to $172.7m worth of charges related to the Revlon’s Chapter 11 filing.
This was in addition to $37.2m in higher income tax provisions, which was offset by higher foreign currency gains of $15.4m and a $8.9m decrease in debt issuance expense.
Revlon originally fell into administration in June 2022, after struggling for years with tumbling annual sales.
But the legacy beauty brand was given fresh hope for exiting bankruptcy after the brand reached a deal with its creditors in February this year.
Once approved, the owner’s restructuring plan aims to cut its current US$3.7bn debt by $2.7bn.
Revlon will still need to pay off any remaining debts by April 2023 to exit bankruptcy.
It comes after the beauty brand was fully acquired by its lenders in December 2022
The move completely wiped out the business’ shareholders, and led to the ousting of long-time owner Ron Perelman.
