The New York Stock Exchange has suspended trading of Revlon’s class A common stock, which had been trading under the ticker symbol REV, according to a Thursday filing with the Securities and Exchange Commission.
Revlon had appealed the NYSE’s decision to delist its shares, but that was rejected, according to a letter the cosmetic company acknowledged receiving, via the filing and an accompanying press release.
The NYSE is expected to complete the delisting “in the near future,” and the stock is then expected to trade on over-the-counter markets, also known as “pink sheets,” per the release.
The NYSE made its move following Revlon’s chapter 11 filing in June that detailed supply chain struggles, the toll from inflation and a burdensome capital structure, including more than $3 billion in debt.
The cosmetics giant has had trouble securing materials and acquiring inventory, and faced manufacturing workforce and logistics challenges. Its liquidity has been further tested by tightening trade credit from vendors and fines from retail partners over late shipments.
But the company has also ceded ground to rivals like L’Oreal that have invested more in research and development and embraced new technologies, according to Sofie Willmott, GlobalData sector head of health and beauty.
“Although Revlon’s debts played a big part in its downfall, the beauty company may have been able to improve its financial position if it had responded to changing consumer needs sooner,” Willmott said in a September research note, saying that the pandemic led rivals to turn to augmented reality and virtual reality to help customers shop online more easily. “However, Revlon was slow to adapt and its reluctance to evolve left it trailing behind many of its more inventive competitors.”