Revlon goes bankrupt

With US stocks officially entering the bear market recently and with concerns that the next recession is upon us, companies are walking another tightrope.

Consumer goods companies including big multinational brands have employed various measures to protect their profit margins and cushion the impact of skyrocketing inflation and weakening consumption. Even household name brands have not been spared from these factors.

Revlon goes bankrupt

Iconic beauty brand Revlon (NYSE:REV) filed for bankruptcy protection almost two weeks ago as it grappled with a sizable debt, supply chain challenges and rising inflation, it said.

The 90-year old beauty brand is also struggling to keep up with competition from emerging brands. Although Revlon’s president and CEO Debra Perelman said consumer demand for the company’s products remains strong, the group has faced challenges in attracting younger customers.

Younger shoppers tend to prefer makeup lines associated with celebrities like Rihanna and Kylie Jenner, according to The New York Times.

Revlon’s stock fell to an all-time low on June 13, closing at US $1.17, following its bankruptcy announcement. Since then, it appears that REV has become a meme stock, as growing short interest spurred buyers to take notice, and REV now trades above US $5.50.