Revlon Gets Court Approval for $1.4 Billion Bankruptcy Loan

Revlon products are seen for sale in a store in Manhattan, New York City, U.S., June 29, 2022. (Reuters)
Revlon products are seen for sale in a store in Manhattan, New York City, U.S., June 29, 2022. (Reuters)
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Revlon Gets Court Approval for $1.4 Billion Bankruptcy Loan

Revlon products are seen for sale in a store in Manhattan, New York City, U.S., June 29, 2022. (Reuters)
Revlon products are seen for sale in a store in Manhattan, New York City, U.S., June 29, 2022. (Reuters)

Revlon Inc received a US bankruptcy judge's permission on Monday to proceed with a $1.4 billion loan, over an objection by junior creditors who argued that its onerous terms could block their chance to recover anything from the cosmetic company's bankruptcy.

US Bankruptcy Judge David Jones in Manhattan ordered modifications to the loan in response to the junior creditors' concerns, but said Revlon must be allowed to borrow the cash it needs to continue its operations in bankruptcy.

Revlon filed for Chapter 11 in June, saying its $3.5 billion debt load left it too cash-poor to make timely payments to critical vendors in its cosmetics supply chain.

To shore up its supply chain and fund its bankruptcy court case, Revlon sought additional financing from a coalition known as the BrandCo Lenders, which had loaned Revlon $1.88 billion in the years before it filed for bankruptcy.

Jones allowed Revlon to borrow $375 million at the start of the bankruptcy. Friday's unlocks between $200 million and $1.05 billion in additional funds, some of which would be used to pay Revlon's existing debts to BrandCo lenders.

The judge's approval also commits Revlon to non-financial conditions, including a schedule for exiting bankruptcy by April 2023 on terms favorable to the lenders.

Jones ordered some changes to the loan agreement, giving Revlon more time to propose a restructuring plan and giving junior creditors more authority to bring lawsuits on Revlon's behalf.

The junior creditors may bring a lawsuit against the BrandCo lenders behind the new loan. They have alleged that those lenders previously "fleeced" Revlon stakeholders in a 2020 debt restructuring that used Revlon's intellectual property as collateral. The 2020 transaction has already been subject to lawsuits by other Revlon lenders.

The BrandCo lenders have said the 2020 transaction kept Revlon afloat during the worst of the COVID-19 pandemic, and was neither “fraudulent” nor “aggressive.”



Nike to Launch New Women's Fitness Brand with Kim Kardashian's Skims

The logo of Dow Jones Industrial Average stock market index listed company Nike (NKE) is seen in Los Angeles, California, United States, April 12, 2016. (Reuters)
The logo of Dow Jones Industrial Average stock market index listed company Nike (NKE) is seen in Los Angeles, California, United States, April 12, 2016. (Reuters)
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Nike to Launch New Women's Fitness Brand with Kim Kardashian's Skims

The logo of Dow Jones Industrial Average stock market index listed company Nike (NKE) is seen in Los Angeles, California, United States, April 12, 2016. (Reuters)
The logo of Dow Jones Industrial Average stock market index listed company Nike (NKE) is seen in Los Angeles, California, United States, April 12, 2016. (Reuters)

Nike will launch a new women's activewear brand in the US this spring in partnership with Kim Kardashian-owned shapewear clothing company Skims, as CEO Elliott Hill works to bolster its portfolio to better compete with upstart brands.

Product innovation and a return to focus on its core sports roots have been at the forefront of Hill's mission to revive sales at Nike, which have been lagging strong growth at Hoka and New Balance, Reuters reported.

The company's bid to appeal to women, who made up about 40% of its customers in 2023, was evident in Nike's first Super Bowl ad in nearly three decades, featuring star women athletes including Jordan Chiles, Caitlin Clark, Sha'Carri Richardson, A'ja Wilson and Sabrina Ionescu.

Skims was launched in 2019 and is valued at around $4 billion. It has seen a strong demand for its shapewear.

Nike said on Tuesday the new brand, called NikeSKIMS, would include training apparel, footwear and accessories for women.

The first collection will be launched at some retail locations in the US as well as at NikeSKIMS' website. The brand would launch globally in 2026, expanding into more retail locations, as well as in the wholesale segment.

The brand would sit alongside other names under Nike's kitty, including Converse, Jordan, ACG and Nike SB.

Nike's shares were up 3% on Tuesday.