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Revlon offered additional details on its turnaround plan. As of 4 p.m. in the New York Stock Exchange composite trading, shares of Revlon rose 57 cents to $5.15. To help U.S. sales of the Revlon brand grow from 5% to 7% in 2001 Revlon launched new products such as skinlights, and the Almay brand expand 8% to 12%, the company projects. Revlon for the year, reported a loss of $127.2 million, the latest in a series of losses that the company has reported over the last few years, though they are narrower than the 1999 loss of $371.5 million. Revlon is slowly but surely improving and digging itself out from its hole. back to top

Revlon, the troubled cosmetic company, which is controlled by New york financier Ronald Perelman, reported a fourth-quarter loss from operations that was more than twice Wall Street's expectations. They posted a net loss of $48.4 million, or 94 cents a basic share, compared to $3.29 a share a year earlier. A restructuring charge of $25.8 million and a charge of $7.8 million from the sale of brand and product line are the latest results. In the U.S. net sales of Revlon products rose by 8.4% to $179.9 million. This was caused partly by Revlon's new strategy to work with its retailers to reduce their inventories and Revlon's plan to reduce promotions. Revlon said its new product pipeline will be the strongest since 1994, but didn't provide current estimates for earnings.  back to top

Since Baron's ran a cover story on the Ronald O. Perelman in the January 29 issue entitled "Party on, Ron" it has been an eventful couple of weeks for Mr. Perelman. He had a 14 million-share investment in Sunbeam until the appliance maker filed for protection under Chapter 11 of the federal bankruptcy. Now  he is struggling to keep Revlon afloat. Two weeks ago, Perelman and his 83%-owned Revlon disclosed an amendment to its bank credit agreement that seemed to give Revlon some breathing room to stay alive. One wonders whether Revlon may be deja vu all over again for Perelman after Sunbeam's Chapter 11 application and the 1996 bankruptcy filing of Perelman's Marvel Entertainment. back to top

In a move to get more money to fund its turnaround and daily operations plan, Revlon Inc., renegotiated the terms of a main bank loan. The company can spend proceeds from the sale of assets on product launches and advertising, and doesn't have to turn over those gains to the bank to pay down debt. Several analyst say a bankruptcy filing  remains possible if the company's new strategy of launching new products and spending heavily to advertise them doesn't work. Laid out in a Securities and Exchange Commission filing, the new agreement, affects a loan from May 1997 valued at $426 million as of Sept. 30th, 2000. Also, its sets minimum requirements for quarterly free cash flow.  back to top

Revlon Consumer Products Corp., and its bank lenders signed an amendment of its credit agreement that is effective December 31, 2000, according to a filing with the Securities and Exchange Commission. It will eliminate leverage ratio contents and interest coverage ratio for 2001; limit the amount Revlon Consumer Products may spend for capital expenditures; add a minimum cumulative EBITDA covenant for the end of the each quarter in 2001; and allow Revlon to keep 100% of the net proceeds from the asset sales. This agreement further provides for an increase in the "applicable margin" by .50 of 1% and requires that Revlon Consumer Products to provide a mortgage on its facility in Oxford, N.C. 
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Ronald Perelman, the Philadelphia native, seemingly cam out of nowhere in 1985 to capture the cosmetic kingdom of Revlon in a bitterly contested takeover. By 1997, Forbes magazine estimated Perelman's net worth at $6.5 billion, making him the 8th richest American that year. But now he is worth $3.3 billion and even that number looks high now. The company is in serious trouble. Regardless of its fate, Perelman is well off. He owns 42 million shares of Golden State Bancorp, that is worth $1.1 billion. Also he has a $900 million stake in Rupert Murdoch's News Corp. Net it all out and Perelman's net worth has shrunk from the $6.5 billion of 1997 to around $2.5 billion today, which isn't exactly slim pickings. It is an substantial amount less but because of his early success and current endeavors Perelman is doing well.  back to top

Cindy Crawford who represented revlon cosmetics for 11 years has ended her relationship with the popular cosmetic company. Revlon is looking for a new woman to use as their cosmetic model. Rumors have been abundant about who it will be taking over as the new model and Revlon declines to comment on the rumors. Although it is known that who will be picked, the decision has to be made soon because they will be needed in time for the upcoming spring ad compaign. Keep an eye on the Sundance Film Festival this week, being held in Park City, Utah, for a clue on who the next cosmetic face of revlon. Revlon, the New York company, will be holding an event at the festival to promote its new Skinlights products. The event will involve InStyle magazine to ensure a plethora of beautiful faces. The InStyle website which is sponsored by Revlon will post on its site celebrities wearing the new makeup, and Revlon's next cover girl could be one of them. back to top

Standard & Poor's Ratings Group said it lowered its corporate credit rating on the holding company for Revlon Inc. Rev Holding is a holding company closely held by Ronald Perelman, its major asset is 83% of the publicly traded shares of Revlon Inc. The lower rating makes it more expensive for a company to borrow money. The reason for Standard & Poor downgrading its corporate credit and senior secured debt ratings on Rev Holdings Inc., from triple-C-minus to double-C, with negative implications. Perelman, in December, was facing a March 15th deadline for repayment, laid the cement for the bond exchange by buying back $630 million of the zero-coupon bonds. This was seen as a show of support for Revlon, which recently has had declining losses and sales. But unless 100% of the bond holders, who are mainly large institutions, turn in their bonds, the bonds could become due and payable and the company will default. Standard and poor called the offer "coercive."  back to top

Revlon is launching a new TV campaign on monday to advertise for its new makeup line, skinlights. The campaign is being designed by Kirshenbaum Bond & Partners, is focusing on a more modern look. The commercial features a woman sitting in a yoga-like position with her hair in a pony tail. The new model featured in the advertising is Ruza. The female voice-over says, "Capture the light, capture the glow."  as soulful and hip music plays. Print ads, to be seen in magazines, such as Vogue and Elle, are set to launch in their march issues. The magazine ads feature Ruza, feature her face and her outstretched arm against a white background. The skinlights product line represents a more upscale customer. It promises by reflecting light in a blend that includes actual crystals, to brighten a woman's complexion.  back to top

Jeffrey Nugent, Revlon Inc.'s Chief Executive was brought in 11 months ago from one of their rivals, Johnson and Johnson's Neutrogena,  to turn around Revlon. His strategy is risky.  He has slashed marketing for Revlon, expects lower sales this year, and then plans plans to jump-start Revlon's growth next year. For the first nine months, sales have dropped 19% from $1.17 billion. Revlon cut back its commercials, and has spent $42.4 million on advertising through June, which is down 45% from last year. Nugent is planning on advertising in trendy magazines like Wallpaper and Nylon instead of just popular ones like Vogue. The company faces short-term hurdles, mainly $400 million in bank debt plus $1.2 billion in bond debt. Market capitalization for revlon has shrunk to $320 million, compared to the $1.83 billion that Ronald Perelman paid to buy the company in 1985.  back to top

Posting a narrower-than-expected loss in the third quarter, Revlon Inc. announced it would close three manufacturing facilities. The three facilities that are being closed are located in Mississauga, Ontario, Phoenix, Arizona, and Auckland, New Zealand. It also plans to consolidate its North American manufacturing facility in Oxford, N.C. Jeffrey Nugent said, "The planned shutdown of manufacturing operations at these three locations and the consolidation of cosmetics manufacturing into the North Carolina facility are important, concrete steps in our effort to reduce costs, increase efficiencies and improve profitability." Revlon said the closing will result in restructuring costs that total between $55 million and $60 million over the next 12-15 months. It expects that these moves will save Revlon between $25 million and $30 million annually. back to top

Revlon cosmetic company said it won't raise prices that it charges U.S. retailers during 2001. This announcement by Revlon affects thousands of stores nationwide such as drug chains and mass volume stores that sell Revlon's beauty care and cosmetic products. Revlon is giving the retailers incentives such as a bonus program that offers 50% of the cost savings, and a flat rate allowance for damaged goods returned, in order to reduce merchandise return. Part of its new concept, it will give retailers six months' notice if a item is being discontinued. It will also accept returns on those items at 85% of list price, and will provide markdowns for the discontinued items. back to top