The company’s struggle to retain its sales influenced Revlon’s decision to file for bankruptcy. The company’s suppliers demanded advance payments as a result of ongoing supply chain problems, making it too difficult to manage the debt load.
Revlon will join Reliance’s expanding portfolio of cosmetic products if the acquisition deal is successful. As Reliance Group seeks to diversify away from its oil and gas sector, the retail behemoth has been rapidly expanding into the fashion, beauty, and personal care segments in recent years.
In premarket trading following the news’ release, Revlon’s stock increased by 20 percent to USD 2.36 while Reliance’s shares increased by 1.9 percent on the Mumbai stock exchange.