June 20, 2022
Revlon Canada Inc. and Elizabeth Arden (Canada) Limited et al. had their Chapter 11 proceedings recognized under the CCAA on June 20. Revlon is a leader in the global cosmetics industry. However, the company has been battered by the ongoing effects of the COVID-19 pandemic, which hit while Revlon was already trying to right-size its business. Although demand for Revlon's products has rebounded, the dual shocks of inflation and supply chain disruptions have left Revlon unable to manufacture sufficient products to fulfill orders. This has created a vicious cycle: lower production means lower sales, causing Revlon's production to fall farther short. Without immediate access to financing, the company was unable to fund going-concern operations. Revlon Canada and Elizabeth Arden Canada are guarantors under various of the company's loan facilities. KSV was appointed information officer. Counsel is Osler for the companies, McCarthy Tétrault for the information officer, Norton Rose for MidCap Funding IV Trust, Blakes for Citibank, N.A, Chaitons for the Financial Services Regulatory Authority of Ontario and Caleywray for Unifor, Local 323.
By Dina Milivojevic