Revlon Inc. will emerge from bankruptcy under new ownership and a new board of directors that includes former executives from Bloomin Brands Inc., Sephora and Walgreens Boots Alliance Inc.<\/p>\n
The reorganized beauty products companysnew board was selected byGlendon Capital Management LP, King Street Capital Management LP, Angelo Gordon & Co. and Nut Tree Capital Management LP, lenders to the businessthat are taking control in chapter 11.<\/p>\n
Revlons bankruptcy ended nearly four decades of ownership bybillionaire financier Ronald Perelman, who bought the company in 1985. It sought protection from creditors last year as it faced a heavy debt load, inflation and supply-chain pressures.<\/p>\n
Debra Perelman, his daughter, has been Revlons chief executive officer. She will remain CEO as well as a board memberas itpasses to new owners.<\/p>\n
Leading the new board as executive chair will be Elizabeth Smith, former CEO of restaurant chain operator Bloomin Brands, owner of dining concepts that include Outback Steakhouse. Ms. Smith is also former chair of the Federal Reserve Bank of Atlanta, and former president of Avon Products Inc. She also worked for 14 years at Kraft Foods Inc., ultimately serving as president of its U.S. beverages and grocery sector.<\/p>\n
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Ms. Smith currently serves on the boards of Hilton Worldwide Holdings Inc. and Authentic Brands Group LLC, and left the Bloomin board earlier this year. <\/p>\n
Its no secret that the company has been under-resourced and burdened with a balance sheet with too much debt, Ms. Smith told WSJ Pro Bankruptcy. For the first time in years, Revlon will have the resources to reclaim its full potential.<\/p>\n
Revlon survived the worst of the Covid-19 pandemic, only to be driven to bankruptcy by supply-chain disruptions and inflationary pressures. Itis expected to emerge from bankruptcy with $2.7 billion less debt, leaving roughly $1.5 billion of debt outstanding.<\/p>\n
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The New York-based company will no longer trade publicly. The equity interests of Mr. Perelman and otherminority shareholders were wiped out in the chapter 11 case.<\/p>\n
Other members of the new Revlon board will include: Martin Brok, former CEO of Sephora and a former regional president for Starbucks Corp. ; Timothy McLevish, former chief financial officer at Walgreens; Hans Melotte, a former executive at Johnson & Johnson and at Starbucks, where his jobs included chief supply chain officer; and Paul Pressler, chairman of eBay Inc. and former CEO of Gap Inc. Mr. Pressler previously served on the boards of Avon, Davids Bridal Inc. and Gap.<\/p>\n
Ms. Smith said the new Revlon directors are considered independent, unaffiliated with thelendergroup recapitalizing the business.<\/p>\n
Holly Kim, <\/p>\n
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Write to Becky Yerak at becky.yerak@wsj.com<\/a><\/p>\n <\/p>\n See the article here: <\/p>\n Revlon Taps New Directors as Lenders Take Control in Bankruptcy - The Wall Street Journal<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Revlon Inc. will emerge from bankruptcy under new ownership and a new board of directors that includes former executives from Bloomin Brands Inc., Sephora and Walgreens Boots Alliance Inc. Continue reading