Revlon on Monday said it has formed a new board of directors, which will begin governing the company once it emerges from Chapter 11 “in the coming days,” according its press release.
New directors include former top executives of Bloomin’ Brands, Sephora, Walgreens Boots Alliance, Starbucks and Gap Inc. Revlon President and CEO Debra Perelman will continue in her role and remain on the board.
Revlon will emerge a private company whose lenders own more than 80% of its reorganized equity. They include Glendon Capital Management, King Street Capital Management, Angelo, Gordon & Co., Antara Capital, Nut Tree Capital Management, Oak Hill Advisors and Cyrus Capital Partners.
Revlon’s bankruptcy is wrapping up more or less as expected, with its lenders in charge and a new board filled with retail veterans. In a plan approved last month by the U.S. Bankruptcy Court for the Southern District of New York, the beauty giant will shed more than $2.7 billion in debt and obtain some $285 million in fresh liquidity.
The company’s incoming board executive chair, Elizabeth Smith, once led Bloomin’ Brands as chief executive officer and was president of Avon Products, in addition to a stint as chair of the Federal Reserve Bank of Atlanta.
Also on the board will be Martin Brok, once chief executive at Sephora; Timothy McLevish, former chief financial officer at Walgreens Boots Alliance; Hans Melotte, former president of Starbucks’ global channel development; and Paul Pressler, currently eBay’s board chair and formerly CEO at Gap Inc.
“Bringing together this accomplished group of individuals for the benefit of all our stakeholders is a testament to the strength of our brands and future growth potential of the Company,” Perelman said in a statement.
Still, its future remains something of a mystery. Even once it's out of Chapter 11, the cosmetics giant may yet find a buyer for some or all of its brands, which include, in addition to its namesake, Elizabeth Arden, Almay, American Crew, Juicy Couture, Britney Spears, Curve, John Varvatos and Christina Aguilera. Regardless of ownership or even its board composition, it has a lot of catching up to do in a space where its rivals have dominated for years as it struggled under heavy debt. Analysts previously criticized the company for its failure to invest in product development and marketing technology. In her statement, Perelman suggested that is set to change.
“Upon emergence, we will have the capital structure and financial resources necessary to invest for the future, serve our loyal customers with high-quality beauty products they know and love, and introduce our beloved brands to the next generation of Revlon consumers around the world,” she said.