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No comments, says RIL to reports of plan to acquire Revlon

In a statement to exchanges, RIL said it is unable to comment on media speculation and various opportunities are evaluated on ongoing basis

June 28, 2022 / 02:02 PM IST
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Reliance Industries (RIL) has said it is “unable to comment” on reports in a section of media that is considering buying bankrupt American cosmetics major Revlon.

In a statement to stock exchange late on June 27, Reliance said it was “unable to comment” on the media speculation and rumours that first surfaced on June 24. The buzz was that Reliance was considering buying out Revlon in the US.

The oil-to-telecom conglomerate said it “evaluates various opportunities on an ongoing basis”, and it would be inappropriate to comment on speculation.

News reports claimed RIL was considering an offer just days after Revlon filed for Chapter 11 bankruptcy on June 16.

Revlon endured loss of business during the coronavirus pandemic, which followed years of dwindling sales and financial controversies.  It had reported long-term liabilities worth $3.3 billion in the first quarter.

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Billionaire Mukesh Ambani-led company said that there was no information to be announced to exchanges.

In the US, Chapter 11, also known as reorganisation bankruptcy, allows companies to recast themselves along with protection from creditors, which allows them to continue to operate.

Also Read: Explained: Revlon goes bankrupt. What went wrong with the cosmetics giant?

The lipstick maker began talks with lenders ahead of looming debt maturities to try to steer the business clear of bankruptcy, the Wall Street Journal reported last week.

It filed for Chapter 11 bankruptcy due to a high debt load, supply chain crunch, and the inability to withstand competition amid the digital boom.

The New York-based company, owned by billionaire Ron Perelman’s MacAndrews & Forbes, struggled amid competition from Estee Lauder and several other smaller companies using social media to attract customers.

Revlon's sales had been declining for years before the COVID-19 pandemic, which also hit the company hard, a Bloomberg report said.

Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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first published: Jun 28, 2022 02:02 pm
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